State Enterprises’ GH¢282bn debt overhang threatens economic stability – Dr Atuahene
Banking and Corporate Governance Consultant, Dr Richmond Atuahene, has warned that the GH¢282 billion debt burden of Ghana’s state-owned enterprises (SOEs) poses a major threat to the stability of the economy.
Banking and Corporate Governance Consultant Dr. Richmond Atuahene has raised concerns that the GH¢282 billion debt burden of Ghana's state-owned enterprises (SOEs) could jeopardize the country's economic stability. Dr. Atuahene emphasized that an impressive surge in SOE profitability does not necessarily indicate genuine operational efficiency, as stated by Professor Isaac Boadi. He cautioned that the reported profits might be influenced by foreign exchange gains, which do not reflect genuine efficiency improvements.
The State Interests and Governance Authority (SIGA) reported a significant turnaround in SOEs' financial performance in 2025, with a consolidated net profit after tax of GH¢19.80 billion, reversing a GH¢2.25 billion net loss in 2024. Revenue for SOEs also rose by 28.12% to GH¢176.43 billion. However, Dr. Atuahene pointed out that total SOE liabilities remained high at GH¢281.99 billion, with the Electricity Company of Ghana (ECG) alone accounting for GH¢82.31 billion.
Dr. Atuahene questioned the sustainability of the reported profits, stating that a 60% increase in foreign exchange gains should not be considered as evidence of efficiency. He warned that the current gains could quickly reverse if the cedi experiences a depreciation. He also warned that the magnitude of SOE debt, at 282 billion, should be a significant concern, especially in the context of Ghana's overall debt burden.
The consultant further emphasized that continued weaknesses among SOEs could have severe consequences for the wider economy. Dr. Atuahene questioned whether the performance of SOEs is being evaluated based on the services they provide to Ghanaians, such as electricity and water, while they continue to charge exorbitant fees. He stressed that the issue needs urgent attention as part of Ghana's ongoing economic reform program, as highlighted by the IMF's PCI, which requires addressing SOEs as one of the ten fundamental reforms.
Failure to tackle these structural weaknesses could ultimately lead to a standstill in economic activity, according to Dr. Atuahene.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
