Ghana Warns Underperforming SOEs: Improve or Face Dissolution

Ghana’s Ministry of Finance has issued a strong warning to State-Owned Enterprises (SOEs), signaling tough measures against persistent underperformance as part of the government’s economic reset agenda.

Speaking on behalf of the Finance Minister, Dr. Cassiel Ato Forson, the Deputy Minister, Thomas Nyarko Ampem, stressed that loss-making SOEs will no longer be tolerated.

Addressing stakeholders at a high-level meeting themed “Leveraging Public Assets for Shared Prosperity,” Mr. Ampem said the government has created a stable economic environment, leaving underperforming entities with “no excuses” for inefficiency.

He reiterated the position of John Dramani Mahama, noting that SOEs failing to deliver value will face restructuring, mergers, privatization, or outright closure. The measures, he said, are aimed at enforcing fiscal discipline, strengthening governance, and improving operational performance across the sector.

Economic Gains Increase Pressure on SOEs

The Deputy Minister pointed to significant improvements in Ghana’s macroeconomic indicators, including a sharp drop in inflation from 23.8% in January 2025 to 3.3% in February 2026. He also cited increased currency stability and a reduction in the Bank of Ghana policy rate as signs of economic recovery.

Despite these gains, he emphasized that SOEs must transition from being fiscal burdens to active contributors to national revenue.

Mounting Costs and Sector Inefficiencies

Mr. Ampem expressed concern over the financial strain caused by inefficiencies in the public enterprise sector. He revealed that government has spent approximately $1.47 billion to address energy sector shortfalls.

He singled out the Electricity Company of Ghana, which continues to lose nearly 40% of power due to technical and commercial inefficiencies.

In the financial sector, the government recapitalized the National Investment Bank and Agricultural Development Bank with over GH¢1 billion in 2025. Additionally, efforts are underway to convert COCOBOD’sq GH¢5.8 billion legacy debt into equity—moves the Deputy Minister described as significant fiscal risks if not properly managed.

Signs of Progress Amid Concerns

Despite the challenges, some SOEs recorded improved performance. The Ghana Ports and Harbours Authority, Ghana Reinsurance Company Limited, and TDC Ghana Limited paid a combined GH¢329.34 million in dividends in 2025, up from GH¢28.7 million in 2024.

However, Mr. Ampem cautioned that consistency and compliance remain critical issues.

Governance and Accountability Measures

The Deputy Minister underscored the importance of strict adherence to regulatory frameworks set by the State Interests and Governance Authority. He warned that non-compliant entities will face sanctions, while boards and management teams will be held accountable for failures in oversight.

The meeting, attended by senior government officials including Vice President Jane Naana Opoku-Agyemang, focused on repositioning SOEs to support national development and deliver value to citizens.

Outlook

Ghana’s renewed push for efficiency signals a shift toward stricter performance standards for public enterprises. As the government intensifies reforms, underperforming SOEs face increasing pressure to improve—or risk being dissolved.