Top 5 Profit-Making State Owned Enterprises in Ghana Despite Financial Challenges
The Acting Director-General of SIGA, Professor Michael Kpessa-Whyte, noted that although many State Owned Enterprises (SOEs) in Ghana are incurring losses, five SOEs have consistently posted profits and paid dividends from 2019 to 2023. However, the ten largest SOEs reported a profound net loss of GH¢11 billion in 2023, attributed mainly to the losses of ECG and GWCL. President John Mahama has urged enhanced management to address these financial issues.
In light of recent discussions regarding the profitability of State Owned Enterprises (SOEs) in Ghana, the Acting Director-General of the State Interests and Governance Authority (SIGA), Professor Michael Kpessa-Whyte, highlighted a group of SOEs that have been performing well. Despite the overarching financial struggles facing many SOEs, several entities have consistently generated profits and paid dividends to the government over the past five years.
The SOEs that have exhibited robust performance include the Bui Power Authority, ESLA PLC, Ghana Gas, the Ghana Infrastructure Investment Fund, TDC Company, and the State Housing Company. These organizations have proven resilient, posting profits and contributing dividends to the state from 2019 to 2023. Professor Kpessa-Whyte noted, “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.”
Conversely, significant concerns arise from the performance of Ghana’s ten largest SOEs by asset base, which collectively reported a net loss of GH¢11 billion in 2023. This alarming figure surpasses the total losses recorded by all 53 SOEs and intensifies the ongoing financial difficulties. Notably, the Electricity Company of Ghana (ECG) alone accounted for GH¢10 billion of these losses, while the Ghana Water Company Limited (GWCL) recorded a GH¢3 billion deficit. Professor Kpessa-Whyte commented, “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 response to these fiscal challenges, President John Mahama has cautioned SOE CEOs regarding improper management of financial resources. He emphasized the necessity for accountability, asserting that he would not hesitate to dismiss non-performing CEOs from their positions. This directive highlights the government’s commitment to improving the operational efficiency of SOEs to bolster the national economy.
The article underscores the contrasting performance of State Owned Enterprises in Ghana, with several entities demonstrating profitability despite widespread losses among the majority. Bui Power Authority, ESLA PLC, Ghana Gas, Ghana Infrastructure Investment Fund, TDC Company, and State Housing Company have emerged as profitable entities, contributing positively to state revenue. However, challenges persist, particularly highlighted by the alarming losses reported by the ten largest SOEs, prompting calls for improved financial management and accountability in leadership.
Original Source: www.ghanaweb.com
