Ghana’s banking sector could face a fresh wave of financial pressure if the cedi begins to lose its current stability, Banking and Corporate Governance Consultant Dr Richmond Atuahene has warned.
The caution comes at a time when State-Owned Enterprises (SOEs) are reporting a dramatic turnaround in their financial fortunes, with consolidated profits surging from a major loss in 2024 to billions of cedis in profit in 2025.
However, Dr Atuahene believes the impressive figures may not tell the full story. He argues that a significant portion of the improvement was driven by foreign exchange gains rather than genuine operational efficiency.
SOEs Record Stunning Profit Turnaround
According to the State Interests and Governance Authority’s (SIGA) 2025 State Ownership Report, Ghana’s SOEs recorded a consolidated net profit after tax of GH¢19.80 billion in 2025.
That represents a dramatic reversal from the GH¢2.25 billion loss recorded in 2024.
At the same time, total revenue increased from GH¢137.64 billion to GH¢176.43 billion, highlighting what initially appears to be a major improvement in the financial performance of state enterprises.
But Dr Atuahene has urged policymakers and the public not to celebrate the figures too quickly.
He argued that the reported profits should be examined carefully to determine whether the improvement reflects stronger business operations or temporary gains linked to currency movements.
“As Professor Isaac Boadi of UPSA said, I look at it, and he called it a miracle. But if you dive deep into it, it’s not operational efficiency. It’s completely, it’s not operational efficiency.”
Dr Richmond Atuahene
Foreign Exchange Gains Raise Red Flags
One of the biggest factors behind the improved financial performance was the cedi’s relative strength.
The SIGA report shows that the performance of the local currency helped reduce SOEs’ finance costs by 42.49 percent.
More strikingly, state enterprises recorded net foreign exchange earnings of GH¢11.72 billion in 2025, compared with a foreign exchange loss of GH¢12.01 billion in 2024.
Dr Atuahene believes this dramatic swing is critical to understanding the reported profits.
“If you are moved by foreign exchange gains by 60%, then you are not talking about efficiency. So, for me, it’s not so much the profit, but are we talking about operational efficiency?” he questioned.
His concern is that if the cedi begins depreciating significantly again, some of the gains could disappear rapidly.
Cedi Depreciation Could Change Everything
The consultant warned that the apparent improvement in SOE finances could be vulnerable to a renewed depreciation of the local currency.
“Because other than that, when the reality comes, you’re going to have a hit. When I mean the reality, should the cedi begin to go downwards, then you’ll begin to see that we have a big problem.”
Dr Richmond Atuahene
A weaker cedi could increase the local currency cost of foreign currency obligations, put pressure on finance costs and reverse some of the foreign exchange gains recorded by state enterprises.
For banks, renewed currency instability could also create broader risks through borrowers with foreign currency exposure and businesses whose financial obligations are sensitive to exchange rate movements.
The warning therefore comes at a crucial moment as Ghana continues efforts to strengthen macroeconomic stability and rebuild confidence in the financial sector.
GH¢282 Billion SOE Debt Raises Alarm
Beyond the currency issue, Dr Atuahene expressed concern about the enormous liabilities accumulated by state enterprises.
The SIGA report puts total SOE liabilities at GH¢281.99 billion.
The Electricity Company of Ghana alone accounted for GH¢82.31 billion of that amount, underlining the enormous financial burden carried by some major state entities.
Dr Atuahene described the debt overhang as a major concern for the Ghanaian economy.
“And also, the magnitude of the debt, 282 billion. If you run an economy with such a debt overhang, I don’t know what you can do.”
Dr Richmond Atuahene
He further noted that SOE liabilities represent a significant portion of Ghana’s wider debt burden.
“Debt overhang of over ¢700 billion; ¢282 billion is by the state enterprises. That is where we should have a little bit of concern and worry.”
Dr Richmond Atuahene
IMF Reforms Put SOEs Under Spotlight
The consultant believes SOE reform must remain a major priority for government, particularly as Ghana continues implementing reforms under its agreement with the International Monetary Fund.
He pointed out that improving the financial health and governance of state enterprises is among the important reforms expected under the programme.
“That is the reason why, in the IMF’s PCI, one of the ten fundamental reforms that we are being required to do is to look at these SOEs, which is very, very important.”
Dr Richmond Atuahene
For Dr Atuahene, the issue goes beyond accounting figures and reported profits. He argues that the ultimate test should be whether state enterprises are delivering the essential services Ghanaians depend on.
Profitability Versus Public Service
The consultant questioned whether SOEs should be considered successful simply because their financial statements show profits.
He pointed to persistent challenges in critical public utilities, particularly electricity and water supply.
“Produce the figures, talk about profit, but the reality, like Professor said, what is the output? You’re not getting your light on. You’re not getting your water.”
Dr Richmond Atuahene
He also questioned the metrics being used to measure the performance of state-owned enterprises. “Are we measuring it by what measure? What metrics are we using?” he asked.
A Warning Ghana Cannot Ignore
Dr Atuahene’s warning places Ghana’s recent SOE profit surge under renewed scrutiny.
While the GH¢19.80 billion consolidated profit represents a remarkable turnaround, the heavy contribution of foreign exchange gains raises questions about how sustainable the improvement would be under different currency conditions.
A renewed cedi slide could increase financial pressures, reverse exchange-related gains and expose weaknesses that may currently be hidden by favourable currency movements.
For Ghana, the challenge is therefore not simply to produce better financial statements. The bigger task is to ensure that SOEs become operationally efficient, financially sustainable and capable of delivering the services for which they were established.
Dr Atuahene delivered perhaps his strongest warning when he said that failure to address the underlying weaknesses could eventually have consequences far beyond individual state enterprises.
“If we go the way we are going with SOEs, one day we will get up, and the country will come to a grinding halt.”
Dr Richmond Atuahene
That warning puts the spotlight firmly on government, regulators and SOE managers to ensure that the current improvement is not merely a temporary financial windfall, but the beginning of a deeper and more sustainable transformation.
READ ALSO: New Economy Consultations Shift Ghana’s Focus From Stability to Production
