Ghana's state-owned enterprises (SOEs) collectively achieved a net profit of GHS 19.8 billion in 2025. This marks a significant turnaround from the GHS 2.25 billion loss recorded in 2024. The 2025 State Ownership Report from the State Interests and Governance Authority (SIGA) highlights this improved financial performance.
This positive shift was largely fueled by a stronger cedi. A more stable currency environment helped SOEs move from a GHS 12.01 billion foreign exchange loss in 2024 to GHS 11.72 billion in net foreign exchange earnings in 2025. This represents a substantial swing of over GHS 23 billion in a single year, significantly boosting the sector's overall profitability.
The improved financial health of SOEs is a crucial development for Ghana's economy. For many years, these state-owned entities have been a persistent source of fiscal risk. They often consumed public capital, accumulated significant arrears, and relied heavily on government guarantees. This turnaround suggests a potential reduction in the financial burden on the national budget.
The State Interests and Governance Authority (SIGA) released these figures, indicating a stronger financial footing for the sector. However, experts caution that this recovery may not fully address deep-seated structural weaknesses. The reliance on currency appreciation raises questions about the sustainability of these gains if macroeconomic conditions worsen.
Despite the aggregate profit, several critical issues persist within the SOE sector. The Electricity Company of Ghana (ECG) alone accounted for GHS 82.31 billion of the total SOE liabilities in 2025. This represents a very substantial portion of the sector's GHS 281.99 billion total obligations. Such a large liability from a single entity poses significant systemic risk to the entire economy.
Furthermore, only two SOEs paid dividends to the government in 2025. Ghana Reinsurance Company and TDC Company contributed a combined GHS 16.00 million. This figure is a 29.36% decrease from the previous year and stands in stark contrast to the sector's reported GHS 19.80 billion net profit. This disparity raises concerns about the actual cash flow returning to the state from these profitable entities.
The presence of chronic loss-makers also remains a challenge. Five entities, including ECG, Ghana Cylinder Manufacturing Company, and Graphic Communications Group Company, recorded losses every year between 2021 and 2025. These persistent losses suggest fundamental issues with their business models or operational efficiency. Addressing these long-standing problems is essential for genuine, sustainable reform.
Another concern is the issue of negative equity. Six entities, such as AirtelTigo, GIHOC Distilleries, and Tema Oil Refinery, carried negative equity throughout the 2021-2025 period. Negative equity means a company's liabilities exceed its assets. For private companies, this would trigger serious questions about solvency and potential restructuring. For state-owned entities, it implies taxpayers are ultimately responsible for these financial shortfalls.
Moving forward, policymakers and market observers will closely monitor whether the SOE sector can maintain its profitability without relying solely on a favorable macroeconomic environment. The focus will shift to structural reforms that improve operational efficiency, reduce liabilities, and ensure a greater return on investment for taxpayers. Addressing the financial health of key entities like ECG and increasing dividend payments will be crucial indicators of genuine progress.