SOE sector records GH¢19.8bn net profit in 2025, ending 4-year loss cycle - SIGA report

Ghana’s State-Owned Enterprise (SOE) sector recorded a major financial turnaround in 2025, with total revenue rising by 28.12% to GH¢176.43 billion, from GH¢137.64 billion in 2024.

The figures are contained in the 2025 State Ownership Report published by the State Interests and Governance Authority (SIGA), which provides an assessment of the financial and operational performance of state-owned enterprises and other specified state entities.

The report shows that the sector broke a four-year run of consolidated net losses in 2025, recording a GH¢19.80 billion net profit after tax, compared with a GH¢2.25 billion net loss in 2024.

The significant improvement marks one of the strongest reversals in the financial performance of Ghana’s state-owned sector in recent years.

According to SIGA, the strongest revenue growth came from the agricultural, manufacturing and infrastructure subsectors.

The agricultural subsector recorded a 203.71% increase in revenue, while manufacturing revenue increased by 114.74%. The infrastructure subsector also recorded substantial growth of 92.24%.

The improved revenue performance contributed to stronger operating results across the sector.

Profit Before Interest and Tax (PBIT) increased to GH¢25.49 billion in 2025, representing a significant improvement over the GH¢502 million loss recorded in 2023.

The sector had already begun to recover in 2024, when PBIT reached GH¢5.80 billion, but the 2025 performance represented a much stronger rebound.

The SIGA report identified 10 state-owned enterprises that maintained profitability throughout the five-year period under review.

They include the Ghana Ports and Harbours Authority (GPHA), Bui Power Authority, Ghana National Gas Company, BOST Energies Company, Minerals Income Investment Fund (MIIF) and TDC Company Ltd.

Their sustained profitability contributed to the broader improvement in the financial position of the state-owned enterprise sector.

The report also highlighted the positive effect of the stronger Ghanaian cedi on the financial performance of SOEs.

State-owned enterprises recorded net foreign exchange earnings of GH¢11.72 billion in 2025, representing a major turnaround from the GH¢12.01 billion foreign exchange loss recorded in 2024.

The improvement in foreign exchange performance was accompanied by a significant reduction in finance costs.

According to SIGA, finance costs declined by 42.49% during the year, providing additional support to the sector’s improved profitability.

Despite the strong improvement in profitability, the overall balance sheet of Ghana’s SOE sector contracted modestly during the period.

Total assets declined by 5.86% to GH¢407.84 billion, with the report attributing a significant portion of the reduction to the financial positions of the Electricity Company of Ghana (ECG), Volta River Authority (VRA) and COCOBOD.

Total liabilities also fell by 4.31% to GH¢281.99 billion.

ECG remained a major contributor to the sector’s liabilities, accounting for GH¢82.31 billion of the total.

The figures highlight the contrasting financial realities within the SOE sector, where strong aggregate profitability exists alongside substantial liabilities and financial pressures in some major entities.

SIGA cautioned that significant financial risks remain concentrated in a number of state-owned enterprises.

Five entities—ECG, Ghana Cylinder Manufacturing Company Ltd, GNPA Ltd, Graphic Communications Group Company and Ghana Digital Centre—recorded losses in every year between 2021 and 2025.

The report also identified six entities, including AirtelTigo Ghana Ltd, GIHOC Distilleries and Tema Oil Refinery (TOR), that maintained negative equity throughout the five-year period.

The persistent losses and negative equity positions of these entities remain a concern for the sustainability of the broader state-owned sector and could continue to place pressure on public finances if not addressed.

Despite the significant improvement in overall profitability, dividend payments to government declined in 2025.

Only Ghana Reinsurance Company Ltd and TDC Company Ltd paid dividends to the government during the year.

Their combined dividend payments amounted to GH¢16 million, representing a 29.36% decline from the previous year.

The relatively low level of dividend payments compared with the sector’s overall profit underscores the distinction between consolidated sector profitability and the amount of cash actually transferred to government as shareholder returns.

Director-General of SIGA, Prof. Michael Kpessa-Whyte, described the 2025 report as significant because it captures the performance of specified entities during the first year of President John Dramani Mahama’s second administration.

According to him, the report provides a comprehensive picture of how state-owned enterprises and other specified entities are contributing to the government’s broader economic reset agenda.

He said the findings should help stimulate meaningful discussions about the future of SOEs, Joint Venture Companies and Other State Entities, with the objective of ensuring that they realise their potential as catalysts for economic growth and development.

The report cautioned that the gains recorded in 2025 must not be treated as a temporary rebound.

“The gains of 2025 must not become a temporary rebound,” the report stated.

It added that the improvement should instead serve as the foundation for building a more efficient, competitive, inclusive and sustainable state-owned sector capable of creating value for Ghanaian taxpayers and contributing significantly to national development.

The 2025 performance therefore presents a mixed picture: while the aggregate SOE sector achieved a dramatic return to profitability, persistent losses, negative equity, high liabilities and declining dividend payments show that substantial reforms are still required across individual entities.