President John Dramani Mahama announced the government will no longer absorb persistent financial losses from State-Owned Enterprises (SOEs). He urged SOE boards and management teams to improve efficiency, accountability, and profitability. This directive signals a reset in the government's relationship with these public entities.
The President delivered this warning at a conference organized by the State Interests and Governance Authority (SIGA). He emphasized that continued reliance on government support places an unnecessary burden on the national budget. Leadership positions in SOEs must now be tied to measurable performance and value creation for the public.
This policy shift comes as Ghana undertakes fiscal consolidation, with the International Monetary Fund (IMF) identifying SOEs as a significant source of fiscal risk. Persistent losses by these entities divert funds that could otherwise support critical public services like health, education, and infrastructure. The government aims to ensure public assets generate public value.
The State Interests and Governance Authority's (SIGA) 2025 State Ownership Report highlights a dramatic improvement in SOE financial performance. The report shows SOEs recorded a GHS 19.8 billion net profit after tax in 2025. This contrasts sharply with a GHS 2.25 billion loss reported in 2024, indicating a significant turnaround.
Revenue for SOEs also increased by 28.12 percent, reaching GHS 176.43 billion in 2025. Despite these impressive profit figures, only two SOEs returned dividends to the government. Dividend payments totaled just GHS 16 million, a tiny fraction of the overall profits. Ghana Reinsurance Company and Tema Development Company were the sole dividend payers.
The Ghanaian Chronicle editorial noted this discrepancy, questioning why such significant profits did not translate into higher dividend returns. Five SOEs consistently recorded losses from 2021 to 2025, while several others maintained negative equity. This situation underscores the need for enhanced accountability beyond mere profitability.
The President's call for improved governance means boards must act as genuine instruments of corporate oversight. Chief executives will face clearly defined performance targets, with consequences for persistent underperformance. Rigorous scrutiny will apply to procurement, debt accumulation, capital expenditure, and related-party transactions.
This move is crucial for Ghana's economic stability and fiscal health. It aims to transform SOEs from financial burdens into engines of public value and economic growth. The government's stance will likely lead to stricter oversight and potential restructuring within the SOE sector. Investors and citizens will watch closely to see if these warnings translate into sustained good performance and increased public dividends.