SOEs dividend contributions fall by 45.5% in 2025 -Report

State-Owned Enterprises (SOEs) in Ghana saw a sharp 45.5% reduction in dividend contributions to the government in 2025, according to a recent report. This decline in dividend payments has raised concerns about the financial health and cash-generating ability of a significant portion of the state-owned enterprise portfolio. The 2025 State Ownership Report revealed that dividend payments from selected SOEs decreased to GHS16.0 million in FY2025 from GHS29.36 million in the previous fiscal year.

The report highlighted that these reduced dividends represented only 0.92% of the GHS1.746 billion total dividends received by the government from institutional groups, underscoring the modest contribution of SOEs to overall dividend inflows. Despite some signs of operational improvement in certain state enterprises, the report noted that only two SOEs, Ghana Reinsurance Company Limited (Ghana Re) and Tema Development Company (TDC) Limited, paid dividends to the government during this period.

Ghana Re contributed GHS13 million, while TDC contributed GHS3 million, both of which showed a decline compared to FY2024. The report praised these two entities for maintaining consistent shareholder returns, indicating prudent financial management and operational resilience. However, the overall reduction in dividend contributions has prompted concerns about the need for stronger profitability across the SOE sector.

Among the SOEs with negative equity, AirtelTigo Ghana Limited, Ghana Water Limited, GNPA Limited, and Tema Oil Refinery were identified as contributing factors to the decline. The State Interests and Governance Authority (SIGA), responsible for overseeing SOE performance, was urged to intensify efforts to enhance efficiency, strengthen corporate governance, and improve financial sustainability.

The report emphasized that increasing dividend payments is crucial for SOEs to contribute meaningfully to national revenue mobilization and provide adequate returns on public investments. As authorities seek to improve public sector efficiency and maximize value from state investments, the findings serve as a catalyst for addressing profitability challenges and enhancing cash-generation capacity among SOEs.