Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, has called for a bold turnaround strategy to rescue the country’s struggling State-Owned Enterprises (SOEs) and Specified Entities (SEs).
Speaking at a high-level meeting in Accra to assess the performance of these entities, Dr. Ato Forson warned that the continued financial losses of SOEs pose a significant fiscal risk to the economy.
The meeting, held under the theme “Resetting State-Owned Enterprises for Sustainable Growth and Fiscal Stability,” brought together key government officials, business leaders, and development partners, including representatives from the World Bank.
The Finance detailed the dire financial state of several major SOEs, revealing that many continue to operate at a loss, limiting their ability to support economic growth.
Notable among the worst-performing SOEs is the Electricity Company of Ghana (ECG), which recorded staggering losses of GHS1.46 billion in 2021, GHS8.06 billion in 2022, and GHS5.96 billion in 2023.
Other entities facing financial difficulties included Ghana Grid Company (GRIDCo) with losses of GHS93.52 million in 2022 and GHS86.56 million in 2023.
GIHOC Distilleries Limited, also recorded losses of GHS25.13 million in 2022 and GHS25.56 million in 2023.
Graphic Communications Group Ltd equally recorded losses of GHS3.04 million in 2021, GHS4.43 million in 2022, and GHS15.18 million in 2023.
Whiles Ghana Cocoa Board (COCOBOD) The largest loss-making SOE, recording GHS2.4 billion in losses in 2021 and GHS3.8 billion in 2022.
The Finance minister noted that despite these losses, only three SOEs—State Housing Company, Ghana Reinsurance Company, and TDC paid dividends in 2024, collectively contributing a modest GHS28.7 million.
Dr. Ato Forson called for the need for urgent reforms to reverse these losses and restore financial stability.
Going forward the government’s intern to turn the narrative with new managerial strategy which will focus on leadership and Capacity-Building by strengthening management teams to drive operational efficiency, enhanced corporate governance by ensuring strict regulatory compliance, Financial Discipline and Implementing strategic decision-making to improve profitability.
The minister also stressed the importance of adhering to financial reporting obligations under the Public Financial Management (PFM) Act, 2016 (Act 921).
He reminded SOEs that they are legally required to prepare annual accounts within two months after the financial year ends and submit audited financial statements within four months.
Going forward, the Ministry of Finance, in collaboration with the State Interests and Governance Authority (SIGA), will strictly enforce these requirements.
Dr. Ato Forson warned that non-compliance would attract sanctions, adding that SOEs must publish their financial statements online to promote transparency and accountability.
The finance minister therefore, urged SOE leaders to take ownership of the government’s economic recovery agenda.
He called for a renewed commitment to fiscal discipline, strategic leadership, and accountability to restore public confidence in state enterprises.
“Our collective actions will either accelerate Ghana’s economic recovery or hinder it—the choice is ours,” he stated.
The meeting served as a platform for stakeholders to discuss measures aimed at revitalizing the performance of SOEs and ensuring their long-term sustainability in Ghana’s economic landscape.
Source: www.kumasimail.com
