Forex gains accounted for more than 50% of SOE profit margins – Kpessa-Whyte admits

Director-General of the State Interests and Governance Authority (SIGA), Prof. Michael Kpessa-Whyte, has acknowledged that foreign exchange gains accounted for more than 50% of the profit margins reported by Ghana’s state-owned enterprises (SOEs) in 2025.

He said although the appreciation of the Ghanaian cedi was a major factor behind the reported GH¢19.8 billion combined net profit, it should not be viewed as the sole explanation for the dramatic improvement in the financial performance of the enterprises.

Prof. Kpessa-Whyte was speaking in an interview with Joy News on Sunday, September 6, following the release of SIGA’s 2025 State Ownership Report.

The report showed that SOEs recorded a significant turnaround, moving from a combined net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.

The sharp improvement has triggered discussions about the factors responsible for the turnaround, particularly the extent to which the appreciation of the cedi against major international currencies contributed to the reported results.

Prof. Kpessa-Whyte defended the figures contained in the report, saying SIGA had clearly disclosed the impact of foreign exchange movements on the financial performance of the SOEs.

“In the report, SIGA made copious disclosures; in fact, in the foreword to the report that I signed, in three different places within the report, I had indicated that the performances we have seen have been significantly shaped by improvements in the forex. In three different areas within that short foreword!

“I think that Ghanaians would be better informed if we all took an interest in reading the report. It is true that forex was a significant part of it. But to say that forex alone provides the overall explanation is not necessarily the case…To be blunt, forex was a big part of it. More than 50 percent of the profit margins were shaped largely by forex,” he stated.

He therefore urged the public to study the full report to better understand the factors underpinning the improved financial performance of the state-owned enterprises.