Ghana's State-Owned Enterprises (SOEs) recorded a combined net profit after tax of GHS 19.8 billion in 2025. This figure marks a sharp turnaround from the GHS 2.25 billion net loss reported in 2024.
Banking and Corporate Governance Consultant, Dr. Richmond Atuahene, has questioned the quality of this financial improvement. He argues that the reported profits do not necessarily reflect better operational efficiency within these state-owned entities. Dr. Atuahene points to significant foreign exchange gains as the primary driver of the positive financial results.
This financial performance comes as Ghana navigates an economic recovery program supported by the International Monetary Fund (IMF). The performance of SOEs is a critical component of the nation's public finance stability and broader economic health. Persistent inefficiencies or reliance on external factors for profit can undermine long-term fiscal sustainability.
Dr. Atuahene stated, “If you are moved by foreign exchange gains by 60%, then you are not talking about efficiency.” He emphasized that the real test for these enterprises will come if the Ghana cedi begins to weaken. Such a scenario would expose underlying operational weaknesses currently masked by currency fluctuations.
The implications of this analysis are significant for Ghana’s economic outlook and fiscal management. Policymakers must now scrutinize the sources of SOE profits to ensure sustainable growth and reduce fiscal risks. The government's commitment to SOE reforms under the IMF program will be crucial in addressing these structural issues.
The State Interests and Governance Authority (SIGA) report indicated that SOE revenues increased by 28.12% to GHS 176.43 billion in 2025. Profit before interest and tax also rose to GHS 25.49 billion. A key factor was net foreign exchange earnings of GHS 11.72 billion in 2025, a stark contrast to the GHS 12.01 billion foreign exchange loss in 2024. Finance costs also fell by 42.49%.
Despite these headline figures, Dr. Atuahene stressed the need to look beyond simple profit numbers. He highlighted the substantial debt burden carried by state enterprises. SIGA’s 2025 report shows total SOE liabilities at GHS 281.99 billion. The Electricity Company of Ghana (ECG) alone accounts for GHS 82.31 billion of this total debt.
Dr. Atuahene warned that such a large debt overhang poses a serious threat to the national economy. He noted that persistent weaknesses in SOEs could eventually lead to broader economic problems. These entities provide essential services, and their financial health directly impacts citizens and businesses across Ghana. The IMF's Post-Program Monitoring (PCI) framework includes SOE reforms as one of its ten fundamental requirements for Ghana.
The consultant also questioned the metrics used to measure SOE performance. He argued that profit alone might not be the best indicator for entities providing public services. Citizens often face issues like unreliable electricity and water supplies, even as these companies report profits. This disconnect suggests that operational efficiency and service delivery quality remain critical concerns.
Addressing these fundamental issues requires a comprehensive approach to SOE governance and management. Reforms must focus on improving operational efficiency, reducing debt, and ensuring that profits are sustainable. Ghana’s long-term economic stability depends on robust and efficient state enterprises that deliver value to the public.