The State Interests and Governance Authority (SIGA) has released its 2025 State Ownership Report (SOR), revealing a significant turnaround in the performance of Ghana’s State-Owned Enterprises (SOEs) and highlighting broader reforms across the country’s state-owned sector.
The report, which marks the tenth edition of Ghana’s flagship assessment of Specified Entities and the fifth published by SIGA since its establishment in 2019, covers 162 of the 175 approved Specified Entities. These comprise 53 SOEs, 36 Joint Venture Companies (JVCs) and 73 Other State Entities (OSEs).
According to SIGA, the report provides a comprehensive review of the financial and operational performance of state-owned institutions and their contribution to the country’s economic development agenda.
“This edition is significant because it documents the performance of Specified Entities for the first year of President Mahama’s second administration,” Director-General of SIGA, Prof. Michael Kpessa-Whyte, said in the report’s release.
The report identifies the SOE sector as the standout performer in 2025.
Total SOE revenue increased by 28.12 percent to GH¢176.43 billion from GH¢137.64 billion in 2024, driven largely by strong growth in the agricultural, manufacturing and infrastructure subsectors.
Profit Before Interest and Tax rose to GH¢25.49 billion, extending a recovery that began after losses recorded in previous years. More notably, SOEs recorded a consolidated Net Profit After Tax of GH¢19.80 billion, compared with a Net Loss After Tax of GH¢2.25 billion in 2024, breaking a four-year cycle of sector-wide losses.
SIGA noted that 10 SOEs, including Ghana Ports and Harbours Authority, Bui Power Authority, Ghana National Gas Company, BOST Energies Company, Minerals Income Investment Fund and TDC Company Ltd, remained profitable throughout the five-year period reviewed.
The report also attributes part of the improved performance to a stronger cedi, which enabled SOEs to record net foreign exchange earnings of GH¢11.72 billion, reversing a foreign exchange loss of GH¢12.01 billion in 2024. Finance costs also declined by 42.49 percent.
Despite the improvements, SIGA warned of persistent challenges. Five SOEs, including the Electricity Company of Ghana (ECG), Ghana Cylinder Manufacturing Company Ltd, GNPA Ltd, Graphic Communications Group Company and Ghana Digital Centre, recorded losses in each year from 2021 to 2025.
The authority also highlighted six entities, among them AirtelTigo Ghana Ltd, GIHOC Distilleries and Tema Oil Refinery, that have maintained negative equity throughout the same period.
Dividend payments from SOEs to government declined, with only Ghana Reinsurance Company Ltd and TDC Company Ltd paying a combined GH¢16 million in 2025.
Joint Venture Companies also recorded strong growth during the review period.
Net profit, excluding minority interests, rose by 36.55 percent to GH¢3.14 billion, while total assets expanded by 25.99 percent to GH¢96.69 billion.
According to the report, minority-interest JVCs generated net profit of GH¢61.32 billion, significantly higher than the GH¢21.06 billion recorded in 2024. These companies accounted for 97.12 percent of all dividends received by government, contributing GH¢1.19 billion.
In contrast, Other State Entities faced mounting financial pressures.
The report shows their net deficit widening sharply to GH¢10.48 billion in 2025 from GH¢2.18 billion a year earlier.
Although total assets increased by 60.15 percent to GH¢310.62 billion, liabilities rose by 41.83 percent to GH¢323.17 billion. The subsector’s accumulated fund also moved from a positive GH¢15.47 billion to a negative GH¢41.14 billion.
SIGA said this deterioration was driven substantially by the Bank of Ghana’s negative equity position of GH¢93 billion.
The authority noted that the performance of Specified Entities was supported by stronger macroeconomic conditions.
Real GDP growth reached 6.0 percent in 2025, the fastest pace since 2019, while key monetary indicators improved significantly.
The Monetary Policy Rate fell from 27 percent to 18 percent, the Ghana Reference Rate declined from 29.31 percent to 15.9 percent, and the average lending rate dropped from 30.25 percent to 20.4 percent by the end of the year.
Public debt rose in nominal terms to GH¢640.99 billion but improved relative to economic output, falling to 45.28 percent of GDP.
Nevertheless, the report flagged fiscal risks stemming from outstanding loan guarantees of GH¢3.03 billion, on-lent loans of GH¢14.73 billion and contingent liabilities arising from public-private partnership agreements.
The report highlights 2025 as a period of substantial institutional reform.
The Ministry of Finance introduced new Public Financial Management implementation guidelines requiring quarterly internal audit and commitment control reports from Specified Entities. Procurement infractions reportedly declined from GH¢18.4 billion in 2024 to GH¢2.2 billion in 2025.
SIGA also expanded its oversight activities by assessing 70 entities under performance contracts and increasing engagement with organisations with reporting compliance challenges.
The report further notes the rollout of the government’s 24-Hour Economy policy through initiatives at entities including TDC, Ghana Publishing Company, AESL, GIHOC Distilleries, DVLA and the Environmental Protection Agency.
Other reforms covered the recapitalisation of National Investment Bank and Agricultural Development Bank, establishment of the Ghana Gold Board (GoldBod), and restructuring recommendations for the Ghana Railway Company Limited.
Climate-related disclosures increased during the year, with 42 of the 162 reporting entities outlining climate-focused projects and initiatives, up from 27 entities in 2024.
Employment across Specified Entities rose by 5.45 percent to 98,724 workers, creating 5,104 additional jobs.
Women’s representation in the workforce increased to 30.02 percent from 29.30 percent the previous year, with female employment growing at a faster rate than male employment.
SIGA described 2025 as a turning point for Ghana’s state-owned sector, citing stronger revenues, improved profitability, enhanced oversight and ongoing institutional reforms.
However, it cautioned that persistent losses in some entities, negative equity positions, governance gaps and fiscal risks remain significant concerns.
“The gains of FY2025 must not become a temporary rebound,” the report stated. “They must become the foundation for a more efficient, competitive, inclusive and sustainable State-owned sector that creates value for the Ghanaian taxpayer and contributes meaningfully to national development.”
Source: businesspostonline
