Accra: Ghana’s State-Owned Enterprises (SOE) sector recorded a significant revenue surge of 28.3 per cent growth, according to the 2024 Annual State Ownership Report (SOR) released by the State Interests and Governance Authority (SIGA). Total SOE revenue according to SIGA surged to GHS133.68 billion in 2024, up from GHS104.19 billion in 2023.

According to Ghana News Agency, the report presented at a media encounter in Accra by Professor Michael Kpessa-Whyte, Director General of SIGA, offers a comprehensive analysis of the financial and operational performance of Ghana’s Specified Entities (SEs), which include SOEs, Joint Venture Companies (JVCs), and Other State Entities (OSEs). The revenue growth in the SOE sector was primarily driven by outstanding performances in the Energy sub-sector, which grew by 38.9 per cent and the Financial and Allied Services sub-sector, which expanded by 49.52 per cent.

Operationally, the sector made steady gains, with Profit Before Interest and Tax (PBIT) recovering to GHS1.57 billion in 2024, marking a significant turnaround from a loss of GHS9.62 billion in 2022. However, the financial narrative for the sector remains complex due to crippling debt. Despite the operational gains, the SOE sector closed for the year 2024 with a deepened net loss of GHS9.67 billion.

This widening loss, compared to -GHS7.14 billion in 2023, was almost entirely attributed to excessive finance costs of GHS9.39 billion, which effectively eroded all operational profits. In terms of oversight, the 2024 SOR covered 152 out of 175 approved Specified Entities, including 54 SOEs, showing an expanded oversight. The average performance index for the 70 SOEs evaluated under performance contracts saw a 6.78 per cent improvement over FY2023.

The report also highlighted persistent fiscal risks, noting that five SOEs including Ghana Cylinder Manufacturing Co. Ltd, Ghana Water Company Ltd, and Tema Oil Refinery consistently reported losses between 2020 and F2024. However, nine SOEs, such as Ghana Ports and Harbours Authority (GPHA), Bui Power Authority (BPA), and Ghana National Gas Company (GNGC), demonstrated uninterrupted profitability over the five-year period.

The JVC sector saw a recovery, moving from a GHS1.33 billion loss in 2023 to GHS1.51 billion in net profits in F024, an over 213.77 per cent increase.