The government has issued a strong warning to State-Owned Enterprises (SOEs), urging them to improve their performance or face restructuring, privatisation, or outright dissolution as part of efforts to restore fiscal discipline and maximise the value of public assets.
Speaking on behalf of the Finance Minister, Dr. Cassiel Ato Forson, at a high-level meeting with key stakeholders of SOEs and Specified Entities, Deputy Finance Minister Thomas Nyarko Ampem said the era of tolerating loss-making public institutions is over. The meeting, held under the theme “Leveraging Public Assets for Shared Prosperity,” focused on repositioning state enterprises to contribute meaningfully to national development.
Mr. Ampem stated that recent economic stabilisation efforts by the government have created a more favourable environment for public enterprises to operate efficiently, stressing that excuses for persistent underperformance are no longer acceptable. He reiterated earlier assurances by President John Dramani Mahama that, under the government’s economic reset agenda, failing entities will be reformed, merged, privatised, or shut down, with strict attention to governance, fiscal responsibility, and operational efficiency.
Highlighting improvements in the broader economy, the Deputy Minister noted a sharp decline in inflation—from 23.8 percent in January 2025 to 3.3 percent in February 2026—alongside increased currency stability and a reduced monetary policy rate. He said these gains provide a solid foundation for public enterprises to thrive, but warned that SOEs must transition from being financial liabilities to reliable contributors to state revenue.
He expressed concern over the heavy fiscal burden posed by inefficiencies within the sector, particularly in the energy industry. Government spending of about $1.47 billion to cover energy sector shortfalls, coupled with significant losses by the Electricity Company of Ghana—estimated at around 40 percent of power due to technical and commercial leakages—was cited as unsustainable.
In the financial sector, Mr. Ampem disclosed that the government injected more than GH¢1 billion into the National Investment Bank and the Agricultural Development Bank in 2025 to stabilise them. He also noted ongoing plans to convert COCOBOD’s GH¢5.8 billion legacy debt into equity, describing such interventions as major fiscal risks that cannot continue indefinitely.
Despite these challenges, the Deputy Minister acknowledged signs of progress, commending the Ghana Ports and Harbours Authority, Ghana Reinsurance Company Limited, and TDC Ghana Limited for significantly increasing their dividend payments to the state. The three entities paid a combined GH¢329.34 million in dividends in 2025, compared to just GH¢28.7 million in 2024. However, he stressed that sustained performance and strict compliance with governance standards remain critical concerns.
Mr. Ampem also underscored the importance of adhering to reporting and accountability requirements set by the State Interests and Governance Authority (SIGA). He warned that non-compliant institutions will face sanctions, while boards and management teams will be held personally accountable for failures in oversight and execution.
He concluded by urging public enterprises to operate with transparency, discipline, and efficiency, emphasising that state institutions exist to serve the Ghanaian people and must demonstrate clear value for money.
The meeting was attended by senior government officials, including Vice President Professor Jane Naana Opoku-Agyemang, and brought together leaders of key public institutions to explore strategies for transforming state enterprises into engines of national growth rather than drains on public finances
