State-Owned Enterprises record GH¢9.68 billion loss in 2024 — SIGA report

State-Owned Enterprises (SOEs) in Ghana recorded a combined loss after tax of GH¢9.68 billion in the 2024 financial year, representing a 35.44 percent deterioration compared to the GH¢7.14 billion loss posted in 2023.

Out of 54 SOEs assessed, 35 companies reported profits, but the sector’s overall net margin declined further from -6.90 percent in 2023 to -7.20 percent in 2024, according to the 2024 State Ownership Report released yesterday in Accra by the State Interests and Governance Authority (SIGA).

The annual report provides an in-depth review of the financial performance of SOEs, Joint Venture Companies (JVCs), and other state entities under the previous administration.

SIGA’s Director-General, Professor Michael Kpessa-Whyte, described the report as a product of “relentless scrutiny, rigorous analysis, and unwavering dedication” by his team. He said it fulfilled the institution’s commitment to transparency and accountability in managing Ghana’s collective assets.

“This report represents a covenant fulfilled to the people of Ghana — to shed an honest light on how their resources are being managed,” Prof. Kpessa-Whyte said.

He called for stronger collaboration between the media and SIGA, noting that journalists play a critical role in interpreting complex financial data and ensuring public understanding of how state assets are utilized. “You are the interpreters and amplifiers — the trusted voices who translate financial metrics into narratives that connect with the public and inspire accountability,” he stated.

Sector Performance and Key Findings

The report revealed mixed outcomes across key sectors. The transport and logistics sub-sector maintained consistent profitability over the past five years, while the energy sector showed a 12.36 percent improvement in its net loss position, narrowing from GH¢9.51 billion in 2023 to GH¢8.34 billion in 2024.

Within the petroleum and related services sector, BOST, GNPC, and Ghana Gas posted profits, whereas the Tema Oil Refinery (TOR) continued to record losses.

Power generation and distribution entities such as the Electricity Company of Ghana (ECG), Ghana Grid Company (GRIDCo), Northern Electricity Distribution Company (NEDCo), and the Volta River Authority (VRA) all suffered losses, with the Bui Power Authority (BPA) emerging as the sole profitable entity.

Mounting Financial Costs

The report painted a concerning picture of the sector’s debt burden, revealing that SOEs incurred an aggregate finance cost of GH¢9.40 billion, nearly six times the total profit before interest and tax (GH¢1.57 billion) recorded in 2024.

“This means that for every GH¢1 of operating profit generated, an additional GH¢4.97 was required to service finance costs,” the report stated.

The high finance costs were largely driven by the Ghana Water Company Limited (GH¢3.64 billion) and COCOBOD (GH¢1.88 billion), which together accounted for nearly 59 percent of the sector’s total finance expenses.

According to the report, GWCL’s financial strain was primarily due to exchange rate risks associated with US dollar-denominated loans.

Joint Venture Companies Show Modest Decline

On Joint Venture Companies (JVCs), the report noted that total revenue fell by 5.07 percent, from GH¢32.80 billion in 2023 to GH¢31.89 billion in 2024. Core revenue constituted 98.58 percent of this total, though it also experienced a marginal 1.73 percent drop.

The review covered 14 minority JVCs in which the state holds at least a 10 percent equity stake — including nine in mining, one in manufacturing, and three in financial and allied services.

Despite the overall decline in SOE performance, SIGA said the findings would guide future reforms and policy adjustments aimed at improving corporate governance, financial discipline, and operational efficiency across all state entities.