Dr. Cassiel Ato Forson, Minister of Finance, has raised concerns over the dire financial performance of Ghana’s State-Owned Enterprises (SOEs), calling for urgent reforms to restore their viability.
Speaking at a high-level governance session with President John Dramani Mahama and the Chief Executive Officers (CEOs) of specific SOEs, Dr. Forson highlighted the alarming financial losses incurred by several enterprises over the past years.
‘This meeting could not come at a better time. It has followed two important meetings of state. The first is the National Economic Dialogue, and the second is the presentation of the 2025 National Budget.
“Your Excellency, our state owned enterprises are going through very difficult times, times that profitability has eluded almost all of them.”
Dr Cassiel Ato Forson, Minister of Finance
Dr. Forson pointed out that the Electricity Company of Ghana (ECG) has been hemorrhaging money for years, with reported losses of GHS 1.46 billion in 2021, GHS 8 billion in 2022, and GHS 5.96 billion in 2023.
The Ghana Grid Company (GridCo) also recorded significant losses, posting a deficit of GHS 93.5 million in 2022 and GHS 8.6 million in 2023.
Even more concerning, according to Dr. Forson, is that the Ghana Cocoa Board (COCOBOD), once a major pillar of Ghana’s economy, has been operating at a staggering loss, recording GHS 2.4 billion in 2021 and GHS 3.8 billion in 2022.
The losses of GIHOC Distilleries, which stood at GHS 25.1 million in 2022 and GHS 25.5 million in 2023, raised eyebrows, with Dr. Forson humorously remarking on the irony of an alcohol-producing company struggling financially.
The Graphic Communications Group, a state-owned media organization, also saw its financial health deteriorate, posting losses of GHS 3 million in 2021, GHS 4.4 million in 2022, and a sharp rise to GHS 15.1 million in 2023.
Few SOEs Turning a Profit
The Finance Minister’s analysis revealed that out of numerous SOEs, only a handful have managed to remain profitable over the past few years.
He noted that in 2018, only two state-owned enterprises—Ghana Ports and Harbours Authority (GPHA) and Ghana Reinsurance Company—recorded profits or paid dividends.
Dr Forson noted that by 2019, this number increased slightly to three, with the inclusion of Ghana Railways and TDC Development Company, contributing a combined dividend of GHS 14.4 million.
However, Dr Forson noted that in 2024, the landscape shifted, with GPHA sliding into losses and State Housing Company emerging as a new profit-making entity alongside Ghana Railways and TDC.
These three collectively contributed a dividend of GHS 28.7 million. Despite this modest improvement, the Finance Minister emphasized that the overall profitability of SOEs remains disappointing.
‘The two most threatening and worrisome are the ECG and the Ghana Cocoa Board. To reverse this trend, we must implement a bold turnaround strategy that transforms loss-making state-owned enterprises into financially viable and self sustaining institutions”.
Dr Cassiel Ato Forson, Minister of Finance
Call for Comprehensive Reforms
In response to the worrying trend, the Fianance Minister called capacity building – strengthening leadership and operational efficiency within SOEs to enhance performance
He also called for corporate governance enhancement – implementing strict regulatory compliance measures and governance training to curb mismanagement and financial discipline – enforcing fiscal prudence and strategic decision-making to restore profitability.
He stressed that without these measures, Ghana’s economy could face severe risks, especially from high-debt SOEs like ECG and COCOBOD.
Dr. Forson also drew attention to the issue of financial mismanagement and non-compliance with reporting obligations.
He reminded SOE heads of their legal duty under the Public Financial Management Act, 2016 (Act 921), which mandates that all SOEs prepare and submit their annual financial accounts no later than two months after the end of each financial year.
“Your excellency, I came here with copies of the Public Financial Management Act to distribute to all state-owned enterprise heads. And I expect that section 95 will be strictly adhered to.”
Dr Cassiel Ato Forson, Minister of Finance
In his concluding remarks, Dr. Forson urged SOE heads and other stakeholders to align with President Mahama’s vision of restoring hope and transparency in governance.
He called for a collective effort to revamp state-owned enterprises, stressing that their revival is critical to the overall economic transformation of Ghana.
“We must work together with determination to do good for the people of Ghana,” he stated, expressing optimism that with the right leadership and strategic reforms, Ghana’s SOEs can return to profitability and play a crucial role in national development.
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