The number of State-Owned Enterprises (SOEs) contributing dividends to Ghana’s economy remains alarmingly low, with only three SOEs making payments in 2024.
This was revealed by Finance Minister Dr. Cassiel Ato Forson during a meeting to evaluate the performance of specified entities.
Despite the government’s push for improved financial management and accountability, Ghana’s dividend-paying SOEs have stagnated at just three entities, highlighting the persistent struggles within the sector.
According to Dr. Forson, the State Housing Company, Ghana Reinsurance Company, and TDC Development Company were the only SOEs that managed to pay dividends in 2024.
Collectively, they contributed just GH¢28.7 million to the national coffers.
This figure, while an improvement from previous years, remains modest given the significant government investments in SOEs.
In comparison, only two SOEs—Ghana Ports and Harbours Authority (GPHA) and Ghana Reinsurance Company—paid dividends in 2018.
By 2019, the number increased to three, with GPHA, Ghana Re, and TDC contributing a total of GH¢14.4 million.
However, by 2024, the State Housing Company replaced GPHA, maintaining the number of dividend-paying SOEs at three.
The lack of dividend payments reflects the broader financial instability among SOEs, many of which are operating at a loss.
Major institutions such as the Electricity Company of Ghana (ECG), Ghana Cocoa Board (COCOBOD), and Ghana Grid Company (GRIDCo) have been posting massive losses, limiting their ability to contribute to the government’s revenue.
Dr. Forson emphasized that the financial struggles of SOEs pose a major fiscal risk to the economy and called for urgent reforms to ensure these entities become financially sustainable.
To address these challenges, the Finance Minister outlined key measures, including improved corporate governance to ensure SOEs operate efficiently and profitably, enhanced financial discipline to reduce waste, mismanagement and strict enforcement of reporting requirements under the Public Financial Management (PFM) Act, 2016.
Dr. Forson stressed that the government will enforce compliance with financial reporting obligations and impose sanctions on SOEs that fail to meet transparency and accountability standards.
With only three out of dozens of SOEs managing to pay dividends, there is growing concern over the viability and long-term sustainability of these state-run enterprises.
The government now faces increasing pressure to implement effective reforms to drive profitability and improve SOE contributions to national development.
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