Only three SOEs paid dividends in 2024 – Finance Minister raises alarm over losses

The Minister of Finance, Dr Cassiel Ato Forson, has revealed that only three State-Owned Enterprises (SOEs) managed to pay dividends to the government in 2024, exposing the worsening financial health of Ghana’s public institutions.

Speaking at the President Mahama Meets CEOs of Specified Entities under SIGA event on March 13, 2025, Dr Forson named the State Housing Company, the Ghana Reinsurance Company and the TDC as the only SOEs that declared dividends last year, contributing a total of GH¢28.7 million.

This marks a significant decline compared to previous years when more SOEs generated returns for the state.

“In 2018, only two SOEs, the Ghana Ports and Harbours Authority (GPHA) and the Ghana Reinsurance, paid dividends. The number increased to three in 2019, with the TDC joining. But in 2024, the GPHA, which was once among the most profitable SOEs, also started making losses,” Dr Forson lamented.

SOEs sinking deeper into debt

While dividend payments have declined, financial losses among state enterprises have surged. Dr Forson presented figures showing that major entities such as the Electricity Company of Ghana (ECG), COCOBOD, GRIDCo, GIHOC Distilleries and the Graphic Communications Group Ltd. have all suffered significant financial setbacks in recent years.

The ECG, one of the worst-performing SOEs, recorded a loss of GH¢1.46 billion in 2021, GH¢8 billion in 2022 and GH¢5.96 billion in 2023. COCOBOD, a key institution in Ghana’s cocoa sector, reported losses of GH¢2.4 billion in 2021 and GH¢3.8 billion in both 2022 and 2023.

Even GIHOC Distilleries, a state-owned alcohol company operating in a thriving market, failed to turn a profit, posting GH¢25.1 million in losses in 2022 and GH¢25.5 million in 2023.

“This does not reflect the potential of our state-owned enterprises,” Dr Forson stated, adding that some SOEs pose a serious financial risk to Ghana’s economy. He singled out the ECG and COCOBOD as the most troubling cases.

Urgent need for reforms

The Finance minister announced that the government is implementing a recovery plan aimed at reversing the fortunes of struggling SOEs. The strategy, he said, will focus on strengthening leadership, enforcing corporate governance regulations and ensuring financial discipline to bring state enterprises back to profitability.

Dr Forson also reminded SOE heads of their legal obligation to submit audited financial statements on time as required by Section 95 of the Public Financial Management Act, 2016 (Act 921). He assured that the Ministry of Finance would collaborate with SIGA to enforce strict compliance with this regulation.