State Enterprises’ GH¢282bn debt overhang threatens economic stability – Dr Atuahene

Banking and corporate governance expert Dr. Richmond Atuahene has cautioned that Ghana's state-owned enterprises' (SOEs) GH¢282 billion debt burden could severely impact the country's economic stability. Dr. Atuahene pointed out that while SOEs have shown signs of improved profitability, this does not necessarily indicate genuine operational efficiency.

He emphasized that these figures may not reflect actual efficiency, drawing parallels to a situation described as a "miracle," which, upon closer examination, is not sustainable. Speaking on Joy News' PM Express, Dr. Atuahene highlighted that the reported profits, particularly foreign exchange gains, should not be viewed as a sign of efficiency.

He noted that focusing solely on the profit figures overlooks the operational challenges these enterprises face. The Electricity Company of Ghana (ECG) alone accounted for GH¢82.31 billion of the SOEs' total liabilities in 2025. Dr. Atuahene stressed that the magnitude of the SOE debt, at GH¢282 billion, is a significant concern, especially in the context of Ghana's overall debt load.

He warned that if the cedi continues to depreciate, the SOEs' financial gains could quickly reverse, causing further economic instability. He cautioned that continued operational weaknesses among SOEs could lead to severe consequences for the broader economy. Dr. Atuahene emphasized that there has been a long-standing issue with SOEs that requires immediate attention.

He questioned whether the SOEs' performance is measured based on the services they provide to Ghanaians, such as electricity and water. He stressed the importance of adopting appropriate metrics to evaluate their performance. Dr. Atuahene argued that addressing the structural weaknesses within SOEs is crucial under Ghana's current economic reform program.

He warned that failure to tackle these issues could eventually lead to economic activity grinding to a halt.