This article discusses the financial performance of State-Owned Enterprises (SOEs) in Ghana. Notably, Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company have been profitable from 2019 to 2023. However, the ten largest SOEs reported a significant net loss of GH¢11 billion in 2023, with calls for improved accountability among their management.
In recent discussions, the Minister of Finance in Ghana, along with various stakeholders, has expressed concerns regarding the increasing financial losses of State-Owned Enterprises (SOEs). Conversely, Professor Michael Kpessa-Whyte, Acting Director-General of the State Interests and Governance Authority (SIGA), highlighted that certain SOEs have performed commendably, generating profits and distributing dividends to the state over the past five years.
The SOEs identified as profitable include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. Professor Kpessa-Whyte remarked, “It’s not all bad news. The best-performing SOEs include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. From 2019 to 2023, they have consistently made profits and contributed dividends to the state.”
Despite this positive outlook for specific SOEs, it was reported that the ten largest SOEs by asset size incurred a substantial net loss of GH¢11 billion in 2023. This amount surpasses the total losses accumulated by all 53 SOEs within the same period, exacerbating their financial challenges. Notably, the Electricity Company of Ghana (ECG) was responsible for significant losses amounting to GH¢10 billion, while the Ghana Water Company Limited (GWCL) faced a shortfall of GH¢3 billion.
Professor Kpessa-Whyte emphasized, “10 SOEs with the most assets recorded an aggregate net loss of GH¢11 billion in the financial year 2023, which surpasses the total loss of all 53 SOEs. ECG alone accounted for GH¢10 billion.” In light of these financial conditions, President John Mahama issued a warning to the CEOs of SOEs against mismanagement, indicating a readiness to replace any non-performing executives.
As Ghana navigates the complexities of maintaining its SOEs, the contrast between successful entities and those facing significant losses raises important concerns regarding governance and management practices within the sector.
In summary, while some State-Owned Enterprises in Ghana have successfully generated profits and contributed dividends to the state, others are grappling with extensive financial losses. The finding of a net loss of GH¢11 billion from the largest SOEs signals serious governance issues, prompting calls for improved management oversight. The future of Ghana’s SOEs hinges on addressing these disparities effectively, as highlighted by stakeholders including the Minister of Finance and President John Mahama.
Original Source: www.ghanaweb.com
