Ten State-Owned Enterprises (SOEs) collectively recorded a net loss of GH¢8.8 billion in 2024, about 1.0% of Gross Domestic Product (GDP).

This constituted over 90% of total SOE net losses.

The SOEs were Electricity Company of Ghana, Volta River Authority, Ghana National Petroleum Corporation, Ghana Cocoa Board and Bui Power Authority. The rest are Ghana National Gas Company, Northern Electricity Distribution Company (NEDCo), Ghana Ports and Harbours Authority, Consolidated Bank Ghana and Ghana Grid Company (GRIDCo).

According to a report by the International Monetary Fund (IMF), ECG alone contributed 85% of the aggregated losses made by SOEs in 2024, equivalent to 0.7% of Gross Domestic Product (GDP).

It explained that financing costs are the critical drag on profitability of the largest SOEs.

“Aggregate financing costs reached GH¢9.4 billion in 2024 - nearly six times the Earnings before Interest and Tax of GH¢1.57 billion. The bulk of these finance costs stem from a limited set of highly indebted entities (GWCL, COCOBOD and energy sector SOEs), confirming that loss-making is heavily concentrated and could be addressed via a set of measures focused on such priority entities”.

It continued that underlying the SOEs performance numbers are structural issues that continue to undermine the commercial viability of several large SOEs.

Some of the key issues identified by the mission include Tariffs Below Cost Recovery, Unidentified and Uncosted Quasi-Fiscal Activities and Market Factors Affecting Performance.

Despite this, the Fund said there are positive pockets of performance that show what is possible when commercial discipline and supportive sector policy are aligned, adding, the overall portfolio averages mask stark differences across subsectors.