Ghana’s state-owned enterprises (SOEs) closed the 2024 financial year with a net loss of Gh₵9.7 million, widening from Gh₵7.1 million in 2023, despite signs of operational recovery, the latest State Ownership Report has revealed.

The sector’s performance before interest and tax (PBIT) rebounded strongly to Gh₵1.57 million in 2024, compared with a loss of Gh₵9.6 million in 2022. However, this progress was almost entirely offset by soaring finance costs, which climbed 34 per cent to Gh₵9.4 million in 2024, up from Gh₵7.0 million the previous year.

According to the report, SOEs effectively paid Gh₵5.97 in interest and related charges for every Gh₵1.00 of operating profit generated, underscoring how debt servicing, rather than operational inefficiency, drove the sector’s poor bottom line.

Key Contributors to Losses

The water utility Ghana Water Company Limited (GWCL) and cocoa regulator COCOBOD were the heaviest drags, together accounting for nearly 59 per cent of the sector’s finance costs.

GWCL incurred Gh₵3.64 million in finance charges, largely due to foreign exchange losses. The cedi’s 2024 depreciation added Gh₵3.44 million to its US dollar-denominated loans, inflating its debt obligations.

COCOBOD followed with Gh₵1.88 million in finance costs, driven by secured bank loans, payables, and lease liabilities.

Other major SOEs also saw debt-related costs erode their performance. GRIDCo could have posted a net profit of Gh₵660.8 million, but ended 2024 with a net loss of Gh₵113.5 million after finance charges of Gh₵774.3 million.

The Ghana National Gas Company (GNGC) recorded Gh₵756.3 million in finance costs, while the Ghana National Petroleum Corporation (GNPC) reported Gh₵619.2 million, both sharply reducing net earnings.

Mounting Debt Pressures

The report highlights how excessive borrowing and exposure to volatile exchange rates have left SOEs vulnerable to refinancing risks and interest rate fluctuations, raising concerns about their long-term sustainability.