Ghana’s state-owned enterprises recorded impressive revenue growth in 2024, generating GH₵133.68 billion compared to GH₵104.19 billion the previous year, representing a significant 28.3 percent increase, according to the latest State Ownership Report released by the State Interests and Governance Authority.
However, the positive revenue figures tell only part of the story, as operational expenses consumed nearly all earnings, reaching GH₵132.1 billion and leaving the entities with razor-thin profit margins that raise questions about operational efficiency and fiscal sustainability.
The energy and financial services sectors were the main drivers of this growth, recording expansions of 38.98 percent and substantial contributions to the overall revenue surge.
The robust performance in these sectors reflects Ghana’s continued investment in power generation and financial infrastructure, though the accompanying cost structure suggests operational challenges persist across the state enterprise ecosystem.
The report, launched in Accra on Friday, covered comprehensive analysis of 152 out of 175 approved state entities, including 54 State-Owned Enterprises, 30 Joint Venture Companies, and 68 Other State Entities.
This extensive coverage provides the most complete picture yet of how Ghana’s public sector investments are performing in an increasingly challenging economic environment.
Despite the concerning expense-to-revenue ratio, some individual entities demonstrated strong dividend performance. Three SOEs—Ghana Reinsurance Company, TDC Company, and State Housing Company—paid a combined dividend of GH₵29.36 million to the government in 2024, representing a 78.9 percent increase from the previous year. The State Housing Company’s contribution was particularly noteworthy in this dividend growth.
The financial performance highlights a critical challenge facing Ghana’s state enterprise sector: while revenue generation has improved significantly, cost management remains problematic.
With expenses consuming over 98 percent of revenues, these entities operate with minimal buffer for unexpected economic shocks or necessary capital investments.
This performance pattern raises important questions about the operational efficiency and strategic direction of state-owned enterprises at a time when Ghana faces mounting fiscal pressures.
The narrow profit margins suggest these entities may struggle to contribute meaningfully to government revenues or finance their own expansion and modernization needs.
The timing of this report is particularly significant as Ghana continues implementing economic reforms and seeks to optimize the performance of state assets.
The data suggests that while state enterprises can generate substantial revenues, fundamental improvements in cost management and operational efficiency remain essential for sustainable performance.
SIGA’s comprehensive analysis provides policymakers with crucial data for evaluating the effectiveness of current state enterprise management strategies and determining whether structural reforms are needed to improve the sector’s contribution to Ghana’s economic development goals.
Story Written By Prince Asante Kwarteng | Kobby Kyei Media
