Editorial: President Mahama’s Call Is InThe Right Direction; Govt Should No Longer Absorb Losses Incurred By SOEs

President Mahama has declared that Ghana's government will no longer tolerate financial losses sustained by State-Owned Enterprises (SOEs). At a conference organized by the State Interests and Governance Authority (SIGA), Mahama emphasized the need for improved efficiency, accountability, and profitability within these institutions.

He stated that leadership positions within SOEs should be linked to measurable performance, value creation, and profitability, as the assets in their control belong to the people and are held in trust on their behalf.

The President's warning is timely, given the recent improvements in SOEs' financial performance. According to SIGA's 2025 State Ownership Report, SOEs recorded a net profit after tax of GH¢19.8 billion in 2025, up from a GH¢2.25 billion loss in 2024; revenue also increased by 28.12 per cent to GH¢176.43 billion. However, a lingering question remains: why did only two SOEs pay dividends to shareholders in 2025, with the total amount representing a minimal fraction of what government received from its broader portfolio?

This improvement in financial performance brings up the question of how to ensure that such positive results become sustainable. Accountability should extend beyond mere profitability, particularly for SOEs that provide essential public services. Government must clearly define the public obligation and fund it transparently. Boards must become true instruments of corporate governance, with clearly defined performance targets, and underperformance should have consequences.

Now, with fiscal consolidation underway and the IMF identifying SOEs as a significant source of fiscal risk, the task of maintaining good performance becomes even more critical. The 2025 figures demonstrate that improvements are possible, but making lasting changes requires the public to hold those entrusted with SOEs accountable for every asset, decision, and cedi.