Ghana’s State-Owned Enterprises: Revenue Growth Offset by Soaring Expenses”

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Ghana’s State-Owned Enterprises (SOEs) reported a total revenue of GH₵133.68 billion in the 2024 financial year, representing a 28.3% growth from GH₵104.19 billion in 2023. However, their financial gains were largely offset by a corresponding increase in operating expenses, which rose by 27.3% to GH₵132.11 million, leaving a meager financial buffer of GH₵1.6 million.

Sectoral Performance:

  • Energy Sector: Generated GH₵82.7 million in revenue, with the Electricity Company of Ghana (ECG) and Ghana National Petroleum Corporation (GNPC) contributing GH₵36.2 million and GH₵20.2 million, respectively. This sector also had the highest expenditure, totaling GH₵87.0 million.
  • Agriculture Sector: Experienced a 21.3% decline in revenue to GH₵16.5 billion, primarily due to a 28.2% decrease in cocoa output. Despite this, expenses increased to GH₵18.7 million, driven by higher cocoa producer prices.
  • Financial and Allied Services: Saw a 49.5% growth in revenue to GH₵21.2 million, with expenses rising by 44.1%. Key contributors included the Ghana Road Fund, GETFund, and Ghana Reinsurance.
  • Transport and Logistics: Recorded a 57.4% increase in revenue to GH₵9.4 million, driven by the Ghana Ports and Harbours Authority (GPHA) and Ghana Airports Company Limited (GACL).
  • Manufacturing: Posted a 76.2% increase in revenue to GH₵428 million, although operating expenses grew by 37.1%.
  • Infrastructure: Reduced operating expenses by nearly 40% to GH₵3.6 million while modestly improving revenues.

Challenges and Concerns:

The SOE sector faces significant challenges, including ¹ ²:

  • Net Loss: GH₵9.67 billion in 2024, wider than the GH₵7.14 billion shortfall in 2023
  • Finance Costs: GH₵9.39 billion, wiping out operational gains
  • Liabilities: Rose by 24.20% to GH₵281.94 billion, with ECG accounting for GH₵71 billion
  • Dividend Payments: Only three SOEs paid dividends in 2024, totaling GH₵28.7 million, a decline compared to previous years

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