Ghana's State-Owned Enterprises (SOEs) recorded a consolidated net profit of GHS 19.8 billion in 2025. However, this financial improvement is primarily due to foreign exchange gains, not operational efficiency, according to Banking and Corporate Governance Consultant Dr. Richmond Atuahene.
Dr. Atuahene warns that if the Ghana cedi begins to depreciate again, these gains could quickly reverse. Such a reversal would place severe pressure on SOE finances and introduce fresh risks to the banking sector. The State Interests and Governance Authority’s (SIGA) 2025 State Ownership Report showed SOEs reversed a GHS 2.25 billion loss in 2024.
This financial turnaround occurs as Ghana navigates a challenging economic landscape, including an International Monetary Fund (IMF) program. The country aims to restore macroeconomic stability and debt sustainability. The SOE sector's performance is critical for public finance, given its significant contribution to the national debt. Previous years saw SOEs consistently underperform, often requiring government bailouts.
Dr. Atuahene emphasized that foreign exchange gains accounted for a substantial portion of the reported profits. He stated that GHS 11.72 billion in net foreign exchange earnings in 2025 significantly contributed to the positive results. This contrasts sharply with a GHS 12.01 billion foreign exchange loss recorded in 2024. The cedi's stability helped reduce SOEs’ finance costs by 42.49 percent, further boosting their financial statements.
The underlying problems in state enterprises could eventually pose a wider threat to the economy. Dr. Atuahene highlighted the alarming scale of debt accumulated by these entities. SOE liabilities reached GHS 281.99 billion, with the Electricity Company of Ghana (ECG) alone accounting for GHS 82.31 billion. This substantial debt burden represents a significant portion of Ghana's overall public debt.
The government must prioritize SOE reforms, especially under the ongoing IMF program. Dr. Atuahene noted that one of the ten fundamental reforms required by the IMF’s Post-Program Monitoring (PPM) focuses on SOEs. He questioned the true measure of SOE profitability when some enterprises still struggle to deliver basic public services. Professor Isaac Boadi of UPSA also described the reported profits as a “miracle,” suggesting a deeper look is needed.
Decision-makers and financial markets will closely monitor the cedi's stability and the government's commitment to SOE reforms. Any significant depreciation of the cedi could quickly erode the reported profits, exposing the banking sector to increased non-performing loans. The sustainability of Ghana's public finances hinges on addressing the structural inefficiencies and debt overhang within its state-owned enterprises. Effective implementation of the IMF-mandated reforms is crucial to prevent future economic shocks.
The focus must shift from accounting profits to genuine operational efficiency and service delivery. Without fundamental changes, the SOE sector remains a potential vulnerability for Ghana's economic stability. The government's actions in this area will be a key indicator of its resolve to achieve lasting economic recovery. Investors will watch for concrete steps to reduce SOE debt and improve their financial health.