10 SOEs recorded net loss of GH¢8.8bn in 2024 – IMF

Ten State-Owned Enterprises (SOEs) in Ghana recorded a net loss of GH¢8.8 billion in 2024, making up about 1.0% of the country's Gross Domestic Product (GDP), according to the International Monetary Fund (IMF). This loss was primarily driven by Electricity Company of Ghana (ECG), which alone accounted for 85% of the aggregated losses, equivalent to 0.7% of GDP.

The IMF's report highlights financing costs as a critical factor in the SOEs' profitability issues, with aggregate financing costs reaching GH¢9.4 billion in 2024, nearly six times the Earnings before Interest and Tax. The report also identifies structural issues such as tariffs below cost recovery, unidentified and uncosted quasi-fiscal activities, and market factors affecting performance as contributing to the SOEs' struggles.

Despite these challenges, the IMF notes that there are positive pockets of performance that demonstrate the potential for improvement when commercial discipline and supportive sector policies are aligned.

Brief written by urgent.news from MyJoyOnline Ghana's own syndicated text. Machine-written — may contain errors; check the original before relying on it.