Ghana’s state-owned enterprises (SOEs) had a busy 2024, recording GH₵133.68 million in total revenue, according to the latest State Ownership Report published by the State Interests and Governance Authority (SIGA). While this marked a healthy 28.3% jump from GH₵104.2 million in 2023, much of the income was quickly absorbed by operating costs, leaving only a slim margin of about GH₵1.6 million.
Rising Revenues, Rising Costs
The report revealed that SOEs’ operating expenses climbed nearly in lockstep with revenue growth, rising 27.3% to GH₵132.11 million.
A large portion of these expenses about 71.6% (GH₵94.6 million) was tied directly to operations. The depreciation of the cedi, which fell 27.8% in 2024, further inflated costs for enterprises with foreign currency exposure, squeezing profitability across the board.
Energy Sector: The Heavyweight Player
The energy sub-sector remained the biggest revenue generator, bringing in GH₵82.7 million. Leading contributors were:
- Electricity Company of Ghana (ECG): GH₵36.2 million revenue, GH₵43.2 million expenditure
- Ghana National Petroleum Corporation (GNPC): GH₵20.2 million revenue, GH₵18.7 million expenditure
Despite its top-line growth, the energy sector also accounted for the highest expenditure at GH₵87.0 million, reflecting its heavy infrastructure and operational costs.
Agriculture: A Year of Struggles
The agriculture sub-sector had a difficult year. Revenues fell 21.3% to GH₵16.5 million, mainly due to a sharp 28.2% slump in cocoa output, which hurt COCOBOD’s performance.
At the same time, expenses in the sector rose to GH₵18.7 million, driven by higher cocoa producer prices, which jumped from GH₵12,800 per tonne in 2022/23 to GH₵33,120 in 2023/24.
Finance, Transport, and Manufacturing: Growth Stories with Caveats
Several other sectors showed encouraging revenue growth but also reported rising costs:
- Financial & Allied Services: Revenue up 49.5% to GH₵21.2 million; key players included the Ghana Road Fund, GETFund, and Ghana Reinsurance. Expenses also rose by 44.1%.
- Transport & Logistics: Revenues climbed 57.4% to GH₵9.4 million, thanks to the Ghana Ports and Harbours Authority (GPHA) and Ghana Airports Company Limited (GACL).
- Manufacturing: Revenues surged 76.2% to GH₵428 million, though operating expenses increased by 37.1%.
- Infrastructure: This sub-sector provided some relief, reducing operating expenses by nearly 40% to GH₵3.6 million, while still improving revenues modestly.
What This Means for Ghana’s Economy
The SIGA report underscores both the potential and challenges of Ghana’s state-owned enterprises. While revenues are growing strongly, much of the financial gain is eroded by rising operating costs, exchange rate pressures, and sector-specific challenges like cocoa output declines.
For policymakers and stakeholders, the key question remains: how can SOEs sustain revenue growth while keeping expenditures in check?
This blog is intended as an informational resource. It summarizes findings from the SIGA 2024 State Ownership Report and highlights sector-by-sector performance of Ghana’s SOEs.