Ghana’s state firms swing from GH¢2.25bn loss to GH¢19.8bn profit

Ghana’s state-owned enterprises have returned to profitability after four consecutive years of losses, recording a combined net profit after tax of GH¢19.80bn in 2025, according to the State Interests and Governance Authority (SIGA).

The performance marks a sharp reversal from the GH¢2.25bn net loss recorded in 2024, as revenue across the SOE sector rose by 28.12% to GH¢176.43bn.

The figures are contained in SIGA’s 2025 State Ownership Report, released on Sunday, August 30.

The report assessed 162 of Ghana’s 175 approved specified entities, comprising 53 state-owned enterprises, 36 joint venture companies and 73 other state entities.

However, the report also identified persistent financial problems at several state-owned institutions, warning that losses, negative equity and fiscal risks could undermine the gains.

Revenue growth drives turnaround

SIGA said the SOE sector recorded the strongest performance of the entities assessed, with significant revenue growth in agriculture, manufacturing and infrastructure.

Revenue in agriculture increased by 203.71%, while manufacturing grew by 114.74% and infrastructure by 92.24%, according to the report.

Profit before interest and tax rose to GH¢25.49bn, continuing a recovery that followed a GH¢502m loss in 2023 and a GH¢5.80bn profit in 2024.

Ten SOEs remained profitable throughout the five-year period covered by the assessment. They included the Ghana Ports and Harbours Authority, Bui Power Authority, Ghana National Gas Company, BOST Energies Company, Minerals Income Investment Fund and TDC Company Limited.

SIGA said the appreciation of the Ghana cedi also improved the sector’s financial position, resulting in net foreign-exchange earnings of GH¢11.72bn and reversing a GH¢12.01bn foreign-exchange loss in 2024.

Finance costs declined by 42.49%.

ECG among five enterprises with persistent losses

Despite the overall turnaround, five SOEs recorded losses in every financial year between 2021 and 2025.

They are the Electricity Company of Ghana (ECG), Ghana Cylinder Manufacturing Company Limited, GNPA Limited, Graphic Communications Group Company and Ghana Digital Centres Limited.

ECG also accounted for GH¢82.31bn of the sector’s total liabilities of GH¢281.99bn.

Six entities, including AirtelTigo Ghana Limited, GIHOC Distilleries and the Tema Oil Refinery, maintained negative equity throughout the five-year period.

The government received just GH¢16m in dividends from SOEs in 2025, a 29.36% decline from the previous year. The report said only Ghana Reinsurance Company Limited and TDC Company Limited paid dividends.

Joint ventures boost state portfolio

Ghana’s joint venture companies continued to record positive results, with net profit excluding minority interest increasing by 36.55% from GH¢2.29bn in 2024 to GH¢3.14bn in 2025.

Minority-interest joint ventures recorded net profit of GH¢61.32bn, up from GH¢21.06bn a year earlier.

They contributed GH¢1.19bn in dividends to the government, accounting for 97.12% of all dividends received across the state-owned portfolio.

Other state entities post GH¢10.48bn deficit

The performance of other state entities deteriorated, with their combined net deficit widening from GH¢2.18bn in 2024 to GH¢10.48bn in 2025.

SIGA attributed the deterioration substantially to the Bank of Ghana’s GH¢93bn negative equity position.

Although the sub-sector’s assets increased to GH¢310.62bn, its liabilities rose to GH¢323.17bn.

Rail company liquidation recommended

SIGA also disclosed that it had recommended the liquidation of the Ghana Railway Company Limited because of prolonged financial, operational and labour difficulties that led to the suspension of its activities.

It proposed that employees should be absorbed into the Ghana Railway Development Authority, which would be transformed into a combined commercial and regulatory institution.

The report said the 97km Tema–Mpakadan railway line began commercial operations under the authority in October 2025.

More jobs, but risks remain

Employment across Ghana’s specified entities increased by 5.45% to 98,724 workers in 2025, adding 5,104 jobs.

SIGA Director-General Prof Michael Kpessa-Whyte said the report covered the first year of President John Mahama’s second administration and provided an assessment of how state entities were contributing to the government's economic reset agenda.

But the authority warned that the 2025 recovery should not be regarded as guaranteed.

“The gains of FY2025 must not become a temporary rebound,” the report stessed.