Despite widespread losses among State-Owned Enterprises (SOEs) in Ghana, several have remained profitable over the past five years. Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company have consistently paid dividends. Conversely, in 2023, the top ten largest SOEs reported a net loss of GH¢11 billion, led by ECG’s substantial losses. President Mahama has cautioned SOE CEOs against financial mismanagement, emphasizing accountability.
In Ghana, the financial struggles of State-Owned Enterprises (SOEs) have been highlighted recently by the Minister of Finance and industry stakeholders. However, not all SOEs are suffering; the Acting Director-General of the State Interests and Governance Authority, Professor Michael Kpessa-Whyte, mentioned some enterprises that are performing well.
From 2019 to 2023, the top profit-making SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. These entities have consistently posted profits and contributed dividends to the state during this period.
“It’s not all bad news. The best-performing SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, they have consistently made profits and contributed dividends to the state,” said Professor Kpessa-Whyte.
In contrast, Ghana’s ten largest SOEs by asset value registered a significant net loss of GH¢11 billion in 2023—this exceeds the cumulative losses of all 53 SOEs in operation. The Electricity Company of Ghana (ECG) was primarily responsible for this, contributing GH¢10 billion, while Ghana Water Company Limited (GWCL) added GH¢3 billion to the deficit.
“10 SOEs with the most assets recorded an aggregate net loss of GH¢11 billion in the financial year 2023, which surpasses the total loss of all 53 SOEs. ECG alone accounted for GH¢10 billion,” he stated.
In response to these financial losses, President John Mahama has issued a firm warning to SOE CEOs about the consequences of mismanagement of resources, indicating he will remove underperforming leaders without hesitation.
The article highlights the contrasting performance of SOEs in Ghana, where a few have managed to remain profitable while the majority face severe financial difficulties. Companies like Bui Power Authority and Ghana Gas are exemplary in profit generation, contributing to state revenue, while others like ECG and GWCL illustrate the challenges of mismanagement and poor performance leading to substantial losses. There is an urgent need for reform and accountability in the SOE sector.
Original Source: www.ghanaweb.com
