State-owned entities (SOEs) in the country have recorded a sharp rise in operating expenses in the 2024 financial year.

According to the 2024 State Ownership Report from the State Interests and Governance Authority (SIGA), an aggregated total of operating expenses jumped by 27.25 per cent to Gh₵132.1 million, up from Gh₵103.8 million in 2023.

The increase marks a slight acceleration from the 23.07 percent rise recorded in 2023, with direct costs alone accounting for 71.63 percent (Gh₵94.6 million) of total operating expenditure.

SIGA attributed the spike partly to the volatility of the cedi, which depreciated by 27.8 percent against major foreign currencies, impacting costs and revenues of entities exposed to foreign transactions.

The energy sub-sector remained the biggest driver of expenditure, recording Gh₵87.0 million in operating costs, a 32.5 percent rise from 2023.

The Electricity Company of Ghana (ECG) and Ghana National Petroleum Corporation (GNPC) dominated the spending, contributing Gh₵43.2 million and Gh₵18.7 million respectively.

In contrast, the Tema Oil Refinery (TOR) reported the least, with Gh₵1.75 million.

Agriculture followed closely, with operating expenses up 19.4 percent to Gh₵18.7 million, largely fuelled by COCOBOD.

Despite a 28.2 percent drop in cocoa production volumes, COCOBOD’s costs surged on the back of a sharp rise in producer prices, from Gh₵12,800 per tonne in 2022/23 to Gh₵33,120 in the 2023/24 season, representing a 158.8 percent increase.

The financial and allied sub-sector saw one of the steepest increases, with expenditure climbing 44.1 percent in 2024 after contracting slightly in 2023.

Key cost drivers included the Ghana Road Fund (Gh₵5.4 million paid to contractors), GETFund (Gh₵3.6 million in social benefits), and Ghana Reinsurance (Gh₵1.1 million in service expenses).

Other sectors also posted notable increases. The communications sub-sector rose by 43.9 percent, dominated by AirtelTigo, which accounted for more than three-quarters of its spending.

Transport and logistics grew by 20.7 percent, led by Ghana Ports and Harbours Authority (Gh₵3.5 billion) and Ghana Airports Company Limited (Gh₵1.3 billion).

Manufacturing costs jumped 37.1 percent, driven by GIHOC, the Precious Minerals Marketing Company (PMMC), and the Ghana Cement Company (GCMC).

The infrastructure sub-sector was the only major outlier, reducing its operating expenses by 39.6 percent to Gh₵3.6 million, down from Gh₵6.0 million in 2023.

The report highlights the performances of 54 State Owned Entities categorised under seven broad sub-sectors, namely: Energy, Transport & Logistics, Financial & Allied Services, Manufacturing, Infrastructure, Communication, and Agricultural.

Thirty-eight (38) of these SOEs, representing 70.37 percent, have a commercial mandate, ten (10), representing 18.52 percent, have both commercial and public service obligations, whilst six (6) are special purpose vehicles (SPVs) representing 11.11 percent.

Below is the full report: