Despite the overall losses of SOEs in Ghana, some entities such as Bui Power Authority and Ghana Gas have reported profits and paid dividends from 2019 to 2023. In 2023, however, the top ten SOEs faced a net loss of GH¢11 billion, largely attributed to the Electricity Company of Ghana. President Mahama has warned against mismanagement among these enterprises.
In recent discussions, the Finance Minister and stakeholders have expressed concerns regarding the substantial losses incurred by State-Owned Enterprises (SOEs) in Ghana. However, Professor Michael Kpessa-Whyte, the Acting Director-General of the State Interests and Governance Authority (SIGA), highlighted that some SOEs have managed to achieve profitability and have been disbursing dividends to the state over the last five years.
Despite the prevailing difficulties faced by SOEs in Ghana, six entities have notably remained profitable, namely: Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. These organizations have consistently generated profits and contributed dividends to the state from 2019 through 2023.
“It’s not all bad news. The best-performing SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, they have consistently made profits and contributed dividends to the state,” Professor Kpessa-Whyte stated.
In contrast, the ten largest SOEs in Ghana, ranked by asset base, reported a staggering net loss of GH¢11 billion in 2023, a figure that overshadows the aggregate losses recorded by all 53 SOEs. This alarming statistic exacerbates the financial challenges they face, with the Electricity Company of Ghana (ECG) alone responsible for GH¢10 billion of the losses and the Ghana Water Company Limited (GWCL) accounting for an additional GH¢3 billion shortfall.
“10 SOEs with the most assets recorded an aggregate net loss of GH¢11 billion in the financial year 2023, which surpasses the total loss of all 53 SOEs. ECG alone accounted for GH¢10 billion,” he emphasized.
In light of these financial challenges, President John Mahama has issued a stern warning to the CEOs of SOEs, emphasizing the need for effective management of financial resources. He expressed his willingness to remove any CEOs who fail to demonstrate performance improvement.
The recent analysis of State-Owned Enterprises in Ghana presents a mixed outlook. While some entities like Bui Power Authority and Ghana Gas are thriving and providing dividends, the majority are struggling with significant losses. The financial performance disparities highlight the urgent need for improved management practices among SOEs. The government’s vigilance in addressing these issues could play a pivotal role in reversing the trend of financial instability.
Original Source: www.ghanaweb.com
