In 2023, Ghana’s 10 largest State-Owned Enterprises (SOEs) by asset base reported a combined net loss of GHC11 billion, according to Professor Michael Kpessa-Whyte, Acting Director-General of the State Interests and Governance Authority (SIGA). This significant loss exceeds the total losses of all 53 SOEs in the country, highlighting the severe financial difficulties faced by key state institutions.
The Electricity Company of Ghana (ECG) was the largest contributor to this loss, with a GHC10 billion shortfall. Additionally, the Ghana Water Company Limited (GWCL) recorded a GHC3 billion loss. This downturn has raised concerns about the management and financial stability of Ghana’s state-run enterprises, as they struggle to meet their operational and financial obligations.
Despite the overall losses, some SOEs have continued to perform well, offering a glimmer of hope for the sector. Profits were consistently recorded by entities such as Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company, all of which contributed dividends to the state from 2019 to 2023. These profitable SOEs stand in contrast to the overall poor performance of their counterparts.
Prof. Kpessa-Whyte’s remarks have reignited calls for urgent reforms within Ghana’s SOE sector, emphasizing the need for improved financial performance and better operational management. The pressing issues surrounding SOEs in the country point to the need for restructuring to avoid further financial strain and ensure sustainable growth in the future.
source: citi newsroom