Dr. Cassiel Ato Forson, Ghana’s finance minister, has expressed worry over the state-owned alcohol manufacturer GIHOC Distilleries Company Limited’s ongoing losses in spite of the country’s high demand for alcoholic drinks.
Speaking at the President Mahama Meets CEOs of Specified Entities under SIGA event in Accra on March 13, 2025, Dr. Forson disclosed that GIHOC Distilleries contributed to the financial difficulties of state-owned businesses (SOEs) by recording a loss of GH¢25.1 million in 2022 and GH¢25.5 million in 2023.
“This one surprises me, Mr. President. In reference to the irony of an alcohol firm failing in a booming industry, he stated, “Even the alcohol-making company is making losses, losses.”
Major organizations including the Electricity Company of Ghana (ECG), Ghana Grid Company (GRIDCo), and COCOBOD have all reported significant losses, adding to the broader financial crisis that SOEs are experiencing as a result of GIHOC’s difficulties.
From success to failure: More state-owned businesses are failing
Additionally, Dr. Forson disclosed that the Ghana Ports and Harbours Authority (GPHA), which was formerly among the few successful state-owned enterprises (SOEs), is now among the organizations that are losing money.
He pointed out that GPHA was one of just two SOEs that paid dividends in 2018, but by 2024, it had begun to lose money.
According to him, just three SOEs—the State Housing Company, Ghana Reinsurance Company, and TDC—paid dividends in 2024, totaling GH¢28.7 million.
This raises concerns about their effect on the national economy because it stands in stark contrast to the billions of cedis in losses reported by other SOEs.
Encourage the practice of financial restraint
Dr. Forson presented a strategy for bringing financial stability back to SOEs, emphasizing that in order to boost performance, operational effectiveness and leadership must be improved.
In addition, he urged financial discipline to turn loss-making SOEs back into profitable businesses and emphasized the necessity of improved corporate governance training to guarantee stringent regulatory compliance.
He reminded SOE leaders of their responsibility to submit audited financial accounts on time, as required by Section 95 of the Public Financial Management Act, 2016 (Act 921).
He stated that in order to implement this regulatory obligation, SIGA and the Ministry of Finance will collaborate closely.