Ghana’s State-Owned Enterprises (SOEs) posted strong revenue growth in 2024, yet ended the financial year with a deepened net loss, underscoring persistent challenges in the sector despite improvements in operational efficiency.
This is according to the latest financial performance report released by the State Interests and Governance Authority (SIGA). The report revealed that the SOE sector achieved significant total revenue growth of 28.30 percent, climbing from GHS104.19 billion in 2023 to GHS133.68 billion in 2024.
The growth was largely driven by the Energy sub-sector, which posted a 38.98 percent increase, and the Financial and Allied Services sub-sector, which surged by 49.52 percent. These gains, SIGA noted, marked a rebound in the financial trajectory of several enterprises after a turbulent period marked by pandemic disruptions and macroeconomic headwinds.
Beyond revenue growth, the report highlighted operational recovery across the SOE landscape. Profit Before Interest and Tax (PBIT) rose substantially to GHS1.57 billion in 2024, following a modest recovery of GHS376.93 million in 2023.
This turnaround was even more significant given the deep operational loss of GHS9.62 billion recorded in 2022. The figures, according to SIGA, reflected ongoing improvements in efficiency and restructuring efforts in many entities.
Steep Financial Costs
However, the progress in operations was overshadowed by steep financial costs, which pushed the sector into a net loss position. The report revealed that excessive finance charges amounting to GHS9.39 billion eroded all operational profits, resulting in an overall net loss of GHS9.67 billion for 2024.
This represented a further decline from the GHS7.14 billion net loss posted in 2023. The development, SIGA cautioned, raises serious concerns about the debt sustainability of many SOEs and their growing fiscal risks to the state.
On the balance sheet, total assets of SOEs increased by 22.52 percent to GHS395.20 billion, with major contributions from the Electricity Company of Ghana (ECG), Volta River Authority (VRA), and Ghana National Petroleum Corporation (GNPC).
At the same time, total liabilities rose by 24.20 percent to GHS281.94 billion. ECG alone accounted for GHS71 billion of the liabilities, highlighting the scale of its debt burden.
Persistent Underperformance among Five SOEs
The report identified persistent underperformance among five SOEs that have consistently posted losses between 2020 and 2024. These include Ghana Cylinder Manufacturing Company Limited, GNPA Limited, Ghana Water Company Limited, Graphic Communication Group Company, and Tema Oil Refinery.
According to the SIGA’s report, their struggles, compounded by the mounting debts of ECG and Ghana Water Limited and the long-standing challenges facing COCOBOD, continue to pose fiscal risks to government finances.
Bright Spots
Despite these setbacks, SIGA pointed to bright spots within the sector. Nine SOEs, including the Ghana Ports and Harbours Authority (GPHA), Bui Power Authority (BPA), Ghana National Gas Company (GNGC), and Bulk Energy Storage and Transportation Company (BOST), consistently reported profits over the past five years.
Their resilience, the report suggested, demonstrates the potential of SOEs to contribute positively to the national economy when operations are efficiently managed.
In terms of returns to the state, three enterprises—Ghana Reinsurance Company Limited, TDC Company Limited, and the State Housing Company Limited—paid dividends totaling GHS29.36 million in 2024.
This represented a 78.88 percent increase over the dividends declared in 2023. Notably, the State Housing Company paid a dividend for the first time in three decades, signaling a gradual recovery in some underperforming entities.
Structural Challenges
The contrasting fortunes of the SOE sector underline the structural challenges confronting Ghana’s state enterprises. While some companies have managed to modernize operations and sustain profitability, others remain heavily indebted, loss-making, and reliant on government support.
SIGA’s report stressed the need for urgent reforms to address inefficiencies, restructure debt, and improve governance frameworks.
With the sector’s liabilities continuing to grow faster than assets, stakeholders warn that without decisive reforms, the fiscal burden on the government could intensify, undermining macroeconomic stability.
The mixed picture presented in the 2024 report—robust revenue growth on one hand and mounting net losses on the other—highlights both the opportunities and risks that SOEs represent for the national economy.
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