Accra: The 2025 State Ownership Report marks a significant step in enhancing public disclosure by covering 162 out of 175 entities and including a record 108 audited financial statements. This expansion in transparency is crucial, as the management of public assets should remain free from partisan influences.
According to Ghana Web, the report raises questions about the operational turnaround of Ghana's State-Owned Enterprises (SOEs) in 2025. While the headline numbers suggest a notable improvement, with a reported profit of GHS19.80 billion compared to a loss of GHS2.26 billion in 2024, a detailed analysis reveals a different story. The improvement largely stems from foreign-exchange movements and a select few entities, rather than widespread enhancements in productivity, management quality, or financial resilience.
The report highlights net foreign-exchange gains of GHS11,715.35 million in 2025, contrasting with a net foreign-exchange loss of GHS12,013.09 million in 2024. This represents a positive swing of approximately GHS23.73 billion, overshadowing the overall reported turnaround from a GHS22.06 billion loss in 2024 to a profit in 2025. SIGA warns of the heavy reliance on foreign-exchange gains, particularly by the Electricity Company of Ghana (ECG) and Tema Oil Refinery (TOR), which could affect the quality and sustainability of the sector's recovery.
Key recoveries weaken when currency gains are subtracted. TOR's profit of GHS1,093.06 million included a foreign-exchange gain of GHS1,380.38 million, while Ghana Water's profit of GHS635.23 million was accompanied by a foreign-exchange gain of GHS2,049.71 million. Both entities would have reported losses without the currency effect. ECG, despite a foreign-exchange gain of GHS12,157.79 million, still posted a loss of GHS2,521.19 million. These figures underscore the importance of distinguishing currency effects from underlying operational results.
Only 34 of the 53 SOEs were profitable in 2025, a slight decrease from 35 in 2024, with 19 entities remaining loss-making. Five entities, including ECG and Ghana Cylinder Manufacturing, recorded losses for the fifth consecutive year. The report attributes the improvement to the scale of earnings among better-performing entities, rather than an increase in the number of profitable SOEs.
Five entities - COCOBOD, the Ghana National Petroleum Corporation, the Ghana Education Trust Fund, the Ghana Ports and Harbours Authority, and TOR - accounted for 89.2% of reported profit. COCOBOD alone contributed 49.1% of the turnaround, aided by an 88.4% rise in world cocoa prices. GETFund's contribution of GHS4,128.08 million, or 20.9% of the sector's profit, largely came from parliamentary allocation, illustrating the challenge of comparing statutory funds with commercial enterprises.
Despite a record profit, SOEs contributed only GHS16 million, or 0.92% of the total dividends of GHS1.746 billion received by the State in 2025, down from GHS29.36 million in 2024. This disconnect prompts a need for clarifying the policy framework governing retained earnings, recapitalisation, and dividends.
Total SOE assets declined by 5.86% to GHS407,848.64 million, while total equity fell by 9.16% to GHS125,852.24 million. The sector's current ratio remained at 0.8:1, and the debt-to-asset ratio stayed at 0.7 for the fifth consecutive year, indicating unchanged structural weaknesses.
The wider state portfolio showed deterioration, with 73 Other State Entities recording a deficit of GHS10,477.78 million in 2025, compared with GHS2,404.21 million in 2024, closing the year with negative equity of GHS41,143.34 million.
To enhance future assessments, four reforms are suggested: publishing profit before and after foreign-exchange gains, establishing a transparent dividend policy, explaining the fall in SOE net worth, and enforcing statutory filing requirements.
While a stronger cedi has improved reported results, the decisive test lies in whether state enterprises can achieve sustainable performance by covering costs, enhancing service delivery, managing debt, and paying reasonable dividends. The 2025 State Ownership Report indicates gains from favorable exchange rates but does not yet demonstrate truly better-performing state enterprises.