LGA commends State-Owned Enterprises for recording strong 2025 performance

The Legal Green Association (LGA) has praised the government, the State Interests and Governance Authority (SIGA), and state-owned enterprises (SOEs) for the notable advancements in the performance of the state-owned sector in the 2025 financial year. The LGA highlighted improvements in public-sector efficiency, financial management, and institutional performance, as detailed in SIGA's 2025 State Ownership Report.

SOEs showed an increased net profit after tax of GH¢19.80 billion in 2025, a contrast to a net loss of GH¢2.25 billion in 2024, and a 28.12% rise in total SOE revenue, from GH¢137.64 billion in 2024 to GH¢176.43 billion in 2025.

The LGA praised SOEs' success in agriculture, manufacturing, and infrastructure, alongside a decrease in finance costs and public-sector procurement violations. The association also commended SIGA for enhancing oversight, performance monitoring, and corporate governance throughout the state-owned sector. However, the LGA emphasized that these improvements must lead to better outcomes for Ghanaians, particularly through job creation.

The group pointed to Article 36(1) of the 1992 Constitution, which calls for the state to foster economic development and provide ample livelihoods and employment opportunities.

The LGA welcomed the rise in employment, which increased to 98,724, but advocated for a greater emphasis on sustainable job creation, especially for the youth. The LGA urged SIGA to persist in performance evaluations and take legal action against entities that fail to meet their obligations. The group expressed worry about persistent losses and negative equity reported by certain state entities, calling for interventions such as restructuring, recapitalization, strategic partnerships, mergers, or liquidation if legally permissible and in the public interest.

These interventions should adhere to the Constitution, relevant laws, principles of natural justice, and public financial management and corporate governance standards. The LGA urged profitable SOEs to reinvest strategically in productive capacity, technology, infrastructure, and employment-generating activities, ensuring the 2025 gains become long-term structural enhancements.