The 54 SOEs under review posted a combined revenue growth of 28.3 per cent, rising from GH₵104.20 billion in 2023 to GH₵133.68 million in 2024.

However, their operating expenses increased almost proportionately, climbing 27.3 per cent to GH₵132.11 million. This left the sector with a slim financial buffer of about GH₵1.6 million.

A significant 71.6 per cent of all operating costs (GH₵94.6 million) were tied to direct expenses, highlighting the operational intensity of the enterprises.

The report also noted that the 27.8 per cent depreciation of the cedi in 2024 inflated costs for SOEs with foreign currency exposures.

Energy Sector Leads in Revenue and Expenditure

The energy sub-sector remained the largest contributor, generating GH₵82.7 million in revenue. The Electricity Company of Ghana (ECG) accounted for GH₵36.2 million, while the Ghana National Petroleum Corporation (GNPC) contributed GH₵20.2 million.

The sub-sector also posted the highest expenditure, at GH₵87.0 million, with ECG and GNPC responsible for GH₵43.2 million and GH₵18.7 million, respectively.

Agriculture Sub-Sector Struggles

Agriculture revenues fell 21.3 per cent to GH₵16.5 billion, largely due to a 28.2 per cent slump in cocoa output, which hit COCOBOD’s earnings.

Despite the revenue dip, expenses in the sub-sector surged to GH₵18.7 million, reflecting higher cocoa producer prices, which rose from GH₵12,800 per tonne in 2022/23 to GH₵33,120 in 2023/24.

Financial, Transport and Other Sub-Sectors

The financial and allied services cluster grew revenues by 49.5 per cent to GH₵21.2 million, with expenses also increasing by 44.1 per cent. Key contributors included the Ghana Road Fund, GETFund, and Ghana Reinsurance.

Transport and logistics improved strongly, raising revenues by 57.4 per cent to GH₵9.4 million, driven by the Ghana Ports and Harbours Authority (GPHA) and the Ghana Airports Company Limited (GACL).

Manufacturing posted a 76.2 per cent increase in revenues to GH₵428 million, though operating expenses also grew by 37.1 per cent.

The infrastructure sub-sector offered some relief, cutting operating expenses by nearly 40 per cent to GH₵3.6 million, while modestly improving revenues.

Source: Albert Kuzor

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He underscored the need for a change in attitude toward electricity consumption to prevent financial challenges in the energy sector.

Speaking in an interview with Metro TV on Wednesday, March 26, the Minister warned of dire consequences if energy usage is not managed responsibly.

“Power is no longer free. Electricity is no more free, and we must all pay for the power that we use,” he stated.

Mr. Jinapor called for efficiency in power usage, particularly among SOEs, which he accused of excessive consumption without financial accountability.

“If we don’t change our attitude, we will run into huge problems,” he warned.

He urged institutions to prioritize energy conservation and payment compliance to ease pressure on the national grid and government resources. The Minister also reaffirmed the government’s commitment to enforcing payment regulations and implementing stricter measures to curb financial losses in the energy sector.

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Speaking to Chief Executive Officers (CEOs) of SOEs, Mahama emphasized the urgent need for financial discipline and improved performance, making it clear that the government will no longer tolerate inefficiencies that burden the national economy.

“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed—either merged, privatized, or shut down,” he stated.

This firm stance signals a policy shift away from continuous government bailouts and subsidies for struggling enterprises. Instead, the focus will be on making SOEs profitable, competitive, and self-sustaining.

Mahama’s directive sets the stage for greater accountability and a results-driven approach to managing state enterprises, ensuring they contribute meaningfully to national development.

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This amount largely comes from firms where the government holds a minority share.

According to the 2023 State Ownership Report by the State Interest and Governance Authority (SIGA), companies with minority government ownership contributed GH₵139,691,792, accounting for 71.89% of the total dividends. Fully government-owned SOEs paid GH₵6,200,000, representing 3.19%, while joint venture companies contributed GH₵48,191,515, making up 24.83% of the total.

The SOE sector posted a profit before tax of GH₵4.6 million, a significant improvement from the GH₵9.6 million loss recorded in 2022, reflecting an 80% improvement.

The SIGA report highlighted that SOEs contributed around 27% to the country’s domestic growth, a more than 50% increase from the previous year.

Project Lead Eric Bonsu Agyabeng, presenting the sector performances, noted that the banking and financial sector faced significant losses due to the domestic debt exchange program.

“Despite some losses in state entities, the government still received over GH₵194 million in dividends from minority shareholding firms, which we consider an impressive outcome,” Agyabeng stated.

Director General of SIGA, John Boadu, emphasized that some losses were expected, particularly from SOEs providing essential services.

“Not all of these entities are profit-driven; some, like ECG and Ghana Water, are tasked with providing essential services, often without profit motives. However, we will continue to monitor these entities to ensure their losses are manageable,” he explained.

During a media briefing, Minister for Public Enterprises, Joseph Cudjoe, praised the report and urged SIGA to continue its efforts to enhance accountability in the public sector.

This year’s State Ownership Report covered 147 entities, the highest number since the it  inception.

Source: Adomonline

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He explained that most of the CEO’s helped the governing party in one way or the other, before political power was won, hence the position serves as reward for work done politically, not necessarily on the basis of competence.

According to him, the situation is compounded by the fact that their performance is not tied to any benchmarks.

Speaking on the Super Morning Show, on Tuesday, April 26, Mr. Thompson stated that, even though some of the CEOs receive high remuneration, the real cause for concern is the fact that the compensation is not linked to performance.

“The issue is not how much they are paid. The issue is that they don’t do anything for it,” he said.

His comment follows recent agitations from a section of the public over the seemingly “fat salaries and allowances” of Management of some State-Owned Enterprises (SOEs) in Ghana.

Mr Thompson bemoaned the recruitment of partisan loyalists into top managerial positions in the public sector, stressing that this does not augur well for enhanced productivity across state-owned enterprises.

“The problem is that it’s very difficult for them to perform. It’s impossible because when they get there, they are appointed because it’s a reward because of something they have done – he was [either] a serial caller, he cooked for delegates, or he provided accommodation for the people when they came to his region or when there was a constituency election, he provided the chairs.

“So he’s done the work already and he’s being rewarded and therein lies the problem. First, there is no measurement of performance. Secondly, it’s a reward and it’s not so much the money but people are worried that they spend tax payer’s money and they get nothing,” he noted.