Only three state-owned firms (SOEs) were able to pay dividends to the government in 2024, according to Finance Minister Dr. Cassiel Ato Forson. This indicates that Ghana’s public institutions are becoming less financially stable.
The only SOEs that declared dividends last year were State Housing Company, Ghana Reinsurance Company, and TDC, which contributed GH¢28.7 million in total, according to Dr. Forson, who was speaking at the President Mahama Meets CEOs of Specified Entities under SIGA event on March 13, 2025.
Compared to prior years when more SOEs produced returns for the state, this is a notable decrease.
Only two state-owned enterprises (SOEs) distributed dividends in 2018: Ghana Reinsurance and Ghana Ports and Harbours Authority (GPHA). In 2019, TDC joined, bringing the total to three. However, GPHA, which was formerly one of the most lucrative SOEs, too began to lose money in 2024, Dr. Forson bemoaned.
SOEs’ debt gets worse
Financial losses for state-owned businesses have increased, despite a decrease in dividend payouts. Major organizations including the Electricity Company of Ghana (ECG), COCOBOD, GRIDCo, GIHOC Distilleries, and Graphic Communications Group Ltd. have all had severe financial losses in recent years, according to data Dr. Forson presented.
In 2021, 2022, and 2023, ECG, one of the worst-performing SOEs, lost GH¢1.46 billion, GH¢8 billion, and GH¢5.96 billion, respectively. An important organization in Ghana’s cocoa industry, COCOBOD, estimated losses of GH¢4.0 billion in 2022 and GH¢2.4 billion in 2021.
Despite operating in a booming market, GIHOC Distilleries, a state-owned alcohol firm, was unable to earn a profit, reporting losses of GH¢25.1 million in 2022 and GH¢25.5 million in 2023.
Dr. Forson said, “This does not reflect the potential of our state-owned enterprises,” adding that certain SOEs represent a significant financial danger to Ghana’s economy. He identified COCOBOD and ECG as the two most concerning cases.
Urgent need for reforms
The Finance Minister announced that the government is implementing a recovery plan aimed at reversing the fortunes of struggling SOEs. The strategy, he said, will focus on strengthening leadership, enforcing corporate governance regulations, and ensuring financial discipline to bring state enterprises back to profitability.
Dr Forson also reminded SOE heads of their legal obligation to submit audited financial statements on time, as required by Section 95 of the Public Financial Management Act, 2016 (Act 921). He assured that the Ministry of Finance would collaborate with SIGA to enforce strict compliance with this regulation.
visit itrotronews everyday for updates