Finance Ministry signals tough measures for underperforming State Enterprises

The Deputy Minister for Finance, Thomas Nyarko Ampem, has issued a strong warning to State-Owned Enterprises (SOEs), urging them to improve performance or face possible dissolution as part of government efforts to enforce efficiency and accountability in the public sector.

Speaking on behalf of the Finance Minister, Cassiel Ato Forson, at a high-level meeting with key stakeholders of SOEs and Specified Entities, Mr. Ampem stressed that the era of tolerating loss-making public enterprises is over. The meeting, held under the theme “Leveraging Public Assets for Shared Prosperity,” focused on strategies to reposition state-owned entities as drivers of economic growth rather than fiscal burdens.

According to the Deputy Minister, the government has taken significant steps to stabilise the economy, creating a more favourable environment for SOEs to operate effectively. He noted that with improved macroeconomic conditions, state enterprises now have fewer justifications for poor performance. “They are now running out of excuses for non-performance,” he stated.

Mr. Ampem referenced earlier commitments by President John Dramani Mahama, reiterating that under the government’s ongoing economic reset agenda, underperforming SOEs will face decisive action. These measures include restructuring, mergers, privatisation, or outright closure, all aimed at enforcing fiscal discipline, strengthening governance, and improving operational performance.

Highlighting recent economic gains, the Deputy Minister pointed to a sharp decline in inflation—from 23.8 percent in January 2025 to 3.3 percent in February 2026—as well as increased currency stability and a reduction in the monetary policy rate by the Bank of Ghana. While acknowledging these improvements, he emphasized that SOEs must now transition from being liabilities on the national budget to contributors to government revenue.

He expressed concern about the high cost of inefficiencies within the SOE sector, particularly in the energy industry. The government, he revealed, has spent approximately $1.47 billion to address shortfalls in the sector. He also highlighted ongoing challenges at the Electricity Company of Ghana (ECG), which continues to lose about 40 percent of power due to technical and commercial inefficiencies—an issue he described as unsustainable.

In the financial sector, Mr. Ampem disclosed that the government injected over GH¢1 billion in 2025 to recapitalise the National Investment Bank (NIB) and the Agricultural Development Bank (ADB). Additionally, efforts are underway to convert the COCOBOD’s GH¢5.8 billion legacy debt into equity. He cautioned that while these interventions were necessary, they pose significant fiscal risks and cannot be sustained indefinitely.

Despite these concerns, the Deputy Minister commended some SOEs for improved financial performance, particularly in dividend contributions. He noted that the Ghana Ports and Harbours Authority (GPHA), Ghana Reinsurance Company Limited, and TDC Ghana Limited collectively paid GH¢329.34 million in dividends in 2025, a substantial increase from GH¢28.7 million recorded in 2024. However, he stressed that consistency and sustained compliance remain critical challenges.

Mr. Ampem further underscored the importance of strict adherence to reporting and governance standards set by the State Interests and Governance Authority (SIGA). He warned that entities failing to comply with these requirements will face sanctions, adding that boards and management teams will be held accountable for lapses in oversight and execution.

In concluding his remarks, the Deputy Minister urged SOEs to operate with discipline, efficiency, and transparency, emphasizing that public enterprises must deliver tangible value to the Ghanaian people or risk being dissolved.

The meeting, attended by key government officials including Vice President Naana Jane Opoku-Agyemang, brought together stakeholders to explore how state-owned enterprises can be restructured and repositioned to better support Ghana’s national development agenda.