Ghana: SOE GH¢19.8bn Profit Questioned Despite SIGA Report

• Ghana's State-Owned Enterprises (SOEs) reported a GH¢19.80 billion net profit after tax in 2025, a significant turnaround from a previous loss.
• Banking consultant Dr. Richmond Atuahene questioned this profit, arguing it does not reflect improved Ghana SOE operational efficiency due to substantial foreign exchange gains.
• SOEs recorded GH¢11.72 billion in net foreign exchange earnings in 2025, contrasting with a GH¢12.01 billion loss in 2024.
• Total SOE liabilities reached GH¢281.99 billion, with the Electricity Company of Ghana (ECG) alone accounting for GH¢82.31 billion.
• Dr. Atuahene stressed that SOE reforms are crucial, forming one of the ten fundamental requirements under Ghana's IMF Policy Coordination Instrument.

Dr. Atuahene contends that the reported profits do not necessarily reflect genuine improvements in Ghana SOE operational efficiency.

Ghana's State-Owned Enterprises (SOEs) reported a significant financial turnaround in 2025, achieving a combined net profit after tax of GH¢19.80 billion, according to the latest State Interests and Governance Authority (SIGA) report. This figure marks a substantial reversal from the GH¢2.25 billion net loss recorded by SOEs in the preceding year, 2024. The report also highlighted a 28.12% increase in SOE revenues, reaching GH¢176.43 billion, with profit before interest and tax climbing to GH¢25.49 billion.

The SIGA report attributed this improved financial performance partly to higher revenues and a notable enhancement in foreign exchange results. Specifically, SOEs recorded net foreign exchange earnings of GH¢11.72 billion in 2025, a stark contrast to the GH¢12.01 billion foreign exchange loss experienced in 2024. Additionally, finance costs for these entities saw a considerable reduction of 42.49% during the period.

However, Banking and Corporate Governance Consultant, Dr. Richmond Atuahene, has raised critical questions regarding the quality of this financial turnaround. While acknowledging the impressive headline figures, Dr. Atuahene contends that the reported profits do not necessarily reflect genuine improvements in Ghana SOE operational efficiency. He suggests that a deeper examination beyond the surface-level profit is essential to understand the true financial health of these state-owned entities.

Dr. Atuahene's skepticism centers on the substantial contribution of foreign exchange gains to the reported profits. He argues that if a significant portion of the profit, potentially as high as 60%, is derived from foreign exchange movements, it cannot be interpreted as evidence of enhanced operational efficiency. He warned that the true test of these enterprises' financial stability would emerge if the Ghanaian cedi were to weaken, potentially exposing underlying vulnerabilities that the current foreign exchange gains might be masking.

Beyond the impact of foreign exchange, Dr. Atuahene also highlighted the alarming scale of debt exposure among Ghana's state enterprises. The 2025 SIGA report reveals total SOE liabilities amounting to a staggering GH¢281.99 billion. A significant portion of this debt, GH¢82.31 billion, is attributed solely to the Electricity Company of Ghana (ECG). This magnitude of debt, he cautioned, should be a serious concern for policymakers, as it represents a substantial burden on the economy.

He further warned that persistent weaknesses within these SOEs, despite reported profits, could ultimately lead to broader economic instability. The consultant emphasized that operating an economy with such a considerable debt overhang presents significant challenges and could eventually undermine national economic progress.

The challenges facing Ghana's state enterprises are not new, having persisted for decades. Dr. Atuahene underscored the critical importance of SOE reforms, particularly in the context of Ghana's engagement with the International Monetary Fund (IMF). He noted that the IMF's Policy Coordination Instrument (PCI) explicitly includes SOE reforms as one of its ten fundamental requirements, highlighting the international recognition of their significance for Ghana's economic stability.

Moreover, Dr. Atuahene questioned the appropriateness of using financial profit as the sole measure of performance for entities that provide essential public services. He pointed to ongoing issues with service delivery, such as inconsistent electricity and water supply, despite the declared profits by these SOEs. For him, the fundamental question revolves around how Ghana effectively measures the overall performance of its public sector enterprises, considering both financial outcomes and the quality of services rendered to citizens. The Ghana SOE GH¢19.8bn profit questioned by experts like Dr. Atuahene underscores the need for a holistic assessment of Ghana public sector enterprise performance.

Lawyers advising on investments, transactions, or partnerships with Ghanaian State-Owned Enterprises (SOEs) should exercise heightened due diligence, scrutinizing financial reports beyond headline profits to assess true operational efficiency and significant debt exposures. This critique highlights potential underlying risks and the imperative to monitor ongoing IMF-mandated SOE reforms which could impact future regulatory and operational landscapes.

Source: Original reporting via Abubakar Ibrahim