SOEs barely break even in 2024, revenue hits GHC133.7m against GHC132.1m expenses

Ghana’s state-owned enterprises (SOEs) generated GHC133.68 million in revenue in 2024, but nearly all of it was swallowed by operating costs, leaving the sector with a slim surplus of just GHC1.6 million, the latest report from the State Interests and Governance Authority (SIGA) shows.

The review, covering 54 SOEs, revealed a 28.3 per cent jump in combined revenue from GHC104.20 million in 2023. Yet operating expenses climbed almost as sharply, rising 27.3 per cent to GHC132.11 million, highlighting the sector’s tight margins.

Direct expenses accounted for 71.6 per cent of costs (GHC94.6 million), while the 27.8 per cent depreciation of the cedi in 2024 drove up costs for SOEs with foreign currency obligations.

The energy sub-sector remained the dominant contributor, bringing in GHC82.7 million in revenue. The Electricity Company of Ghana (ECG) generated GHC36.2 million, and the Ghana National Petroleum Corporation (GNPC) added GHC20.2 million. Energy also recorded the highest expenditures at GHC87.0 million, with ECG and GNPC responsible for GHC43.2 million and GHC18.7 million respectively.

Agriculture suffered a 21.3 per cent revenue decline to GHC16.5 million, primarily due to a 28.2 per cent drop in cocoa output affecting COCOBOD earnings. Despite falling revenue, costs rose to GHC18.7 million, reflecting higher cocoa producer prices, which surged from GHC12,800 per tonne in 2022/23 to GHC33,120 in 2023/24.

The financial and allied services cluster posted a 49.5 per cent rise in revenue to GHC21.2 million, with expenses up 44.1 per cent, driven by the Ghana Road Fund, GETFund, and Ghana Reinsurance.

Transport and logistics reported strong gains, lifting revenues by 57.4 per cent to GHC9.4 million, fuelled by the Ghana Ports and Harbours Authority (GPHA) and the Ghana Airports Company Limited (GACL). Manufacturing soared with a 76.2 per cent revenue increase to GHC428 million, although operating costs also rose by 37.1 per cent.

The infrastructure sub-sector offered some respite, trimming operating expenses by nearly 40 per cent to GHC3.6 million while modestly increasing revenues.

SIGA’s report underscores that while Ghana’s SOEs are expanding revenue, rising costs and tight margins continue to challenge profitability, signalling the need for stronger efficiency measures and fiscal discipline.

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