President John Dramani Mahama has warned boards and management of Ghana’s state-owned enterprises (SOEs) that survival no longer constitutes success. He demands stronger performance, tighter financial discipline, and greater accountability across the public enterprise sector. This directive comes as five SOEs recorded losses every year from 2021 to 2025.
Other state entities accumulated an aggregate deficit of GHS 144.4 billion in 2025. This figure marks a sharp increase from GHS 33 billion recorded in 2024. The financial position of some entities is particularly concerning, with aggregate liabilities exceeding net assets by more than GHS 565.7 billion. These figures underscore the urgent need for system-wide improvement beyond isolated successes.
This situation reflects a long-standing challenge within Ghana's public sector regarding SOE efficiency and financial viability. Successive governments have grappled with the burden these entities place on the national budget. The State Interests and Governance Authority (SIGA) was established to improve governance and performance. However, President Mahama's remarks suggest that significant structural issues persist, impacting national development priorities.
Speaking at the SIGA Governing Boards and CEOs’ Conference 2026, President Mahama stated, “Every cedi transferred, guaranteed or written off on behalf of a poorly performing enterprise reduced the resources available for schools, hospitals, roads, jobs and social protection.” This highlights the direct trade-off between SOE underperformance and essential public services. He emphasized that government would not provide indefinite financial support to entities refusing to reform.
The implications of this directive are far-reaching for Ghana’s economic stability and public finance management. Boards and management will now face assessment against clear financial, operational, governance, and development targets. Poor performance will trigger corrective action, including potential leadership changes. This move aims to reduce the fiscal risk posed by struggling SOEs and free up funds for critical national investments.
President Mahama stressed that SOEs were established for strategic national importance or to address market gaps. Commercial entities must be efficient, competitive, and financially sustainable. They must also generate appropriate returns on public investment. Entities with public service mandates must deliver measurable social and economic value. This includes reliable services, effective regulation, and improved outcomes for citizens.
The true measure of performance, he noted, is not mere activity or visibility. It is whether the work creates tangible benefits for ordinary Ghanaians. A farmer, trader, worker, entrepreneur, or student should experience the value created. This standard applies equally to regulators, commissions, statutory authorities, and public funds. Performance contracts will be treated as a covenant with the Ghanaian people, not just administrative paperwork.
Targets must be ambitious, realistic, and measurable. Reports submitted to SIGA must be timely, complete, and credible. President Mahama also reminded profitable state enterprises of their obligation to pay dividends. Returns on public investment belong to the people of Ghana and should contribute to the national budget. Where enterprises retain profits, it must be backed by credible investment plans.
These plans should strengthen the institution and generate greater long-term value. He cautioned against using profits belonging to Ghanaians to finance excessive benefits and comforts. The President also announced a stronger link between remuneration and institutional performance. The proposed transition to an Independent Public Employment Commission offers an opportunity for a more transparent framework.
This framework will cover public-sector remuneration, including compensation within SOEs. Executive pay should progressively reflect an enterprise’s financial health, productivity, and achievement of agreed targets. It should also consider service quality, fiscal sustainability, and broader contribution to the state. The objective is to create incentives for better performance and strengthen accountability. High-performing enterprises and their leaders should be rewarded appropriately. However, chronically poor performance cannot continue to attract higher salaries and allowances.
He directed boards, chief executives, and management teams to cooperate fully with SIGA, the Fair Wages and Salaries Commission, and the Ministry of Finance. This cooperation is crucial for compensation reviews and benchmarking. No SOE should use its corporate status or revenue-generating capacity to operate outside approved national remuneration frameworks. President Mahama also reinforced the distinction between board oversight and executive management. Board membership is not ceremonial or an entitlement. Boards are responsible for strategic direction, policy, risk oversight, financial reporting, and institutional performance. However, chairpersons should not assume day-to-day executive roles. Chief executives must regard executive authority as a responsibility to deliver results.