Top 5 Profit-Making State Owned Enterprises in Ghana

In Ghana, while several State Owned Enterprises (SOEs) have made profits from 2019 to 2023, significant losses have also been recorded leading to a net deficit of GH¢11 billion. Key profit makers include Bui Power Authority and Ghana Gas, while ECG has been a major contributor to the losses. President Mahama has warned against financial mismanagement among SOE executives.

In Ghana, recent discussions led by the Minister of Finance and other key stakeholders have underscored the troubling trend of losses faced by State Owned Enterprises (SOEs). However, Professor Michael Kpessa-Whyte, the Acting Director-General of the State Interests and Governance Authority (SIGA), indicated that there are specific SOEs that have successfully generated profits and distributed dividends to the government over the past five years.

The top-performing profit-making SOEs identified from 2019 to 2023 include Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company. Professor Kpessa-Whyte emphasized that these enterprises have continually registered profitability, contributing positively to the state’s revenue.

Conversely, it was noted that Ghana’s ten largest SOEs, based on asset size, recorded a staggering net loss of GH¢11 billion in 2023, significantly overshadowing the cumulative losses of all 53 SOEs. This alarming figure illuminates the financial challenges faced by these enterprises. The Electricity Company of Ghana (ECG) was responsible for GH¢10 billion of these losses, while the Ghana Water Company Limited (GWCL) reported a deficit of GH¢3 billion.

Furthermore, Professor Kpessa-Whyte pointed out, “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.” This scenario has raised concerns regarding the sustainability and management practices within these entities.

In a related context, President John Mahama has cautioned the CEOs of SOEs against financial mismanagement, highlighting the potential consequences for non-performing executives. He made it clear that he is prepared to take decisive action, including dismissal, against individuals failing to meet their responsibilities effectively.

The situation regarding State Owned Enterprises in Ghana presents a mixed picture. While certain entities have demonstrated sustained profitability and have made dividends payable to the state, the overall landscape remains troubling, as significant losses are reported among the largest SOEs. Focused management and accountability will be essential moving forward to rectify these financial challenges and improve the performance of SOEs in Ghana.

Original Source: www.ghanaweb.com