Ghana’s State-Owned Enterprises (SOEs) returned to profitability in 2025, recording a combined net profit after tax of GH¢19.80 billion after four consecutive years of consolidated net losses, according to the State Interests and Governance Authority (SIGA).

The development is highlighted in SIGA’s 2025 State Ownership Report, which tracks the financial and operational performance of 162 of the country’s 175 approved Specified Entities.

The report said SOE revenue increased by 28.12% to GH¢176.43 billion in 2025, from GH¢137.64 billion in 2024.

The growth was driven largely by the agricultural, manufacturing and infrastructure sub-sectors, whose revenues increased by 203.71%, 114.74% and 92.24%, respectively.

Profit before interest and tax also increased to GH¢25.49 billion, continuing a recovery that began after the sector recorded a loss of GH¢502 million in 2023 and a partial recovery to GH¢5.80 billion in 2024.

SIGA said the sector’s return to profitability represented a significant turnaround.

“Most significantly, the sector broke a four-year cycle of consolidated net losses,” the report stated.

The report also attributed part of the improvement to a stronger cedi, which helped SOEs record net foreign exchange earnings of GH¢11.72 billion, compared with a foreign exchange loss of GH¢12.01 billion in 2024.

Additionally, finance costs also fell by 42.49% during the year.

However, SIGA warned that significant challenges remain within the state-owned sector.

Five SOEs, including the Electricity Company of Ghana (ECG), Ghana Cylinder Manufacturing Company, GNPA Ltd, Graphic Communications Group Company and Ghana Digital Centre, recorded losses in every year between 2021 and 2025.

Six entities, including AirtelTigo Ghana, Gihoc Distilleries and Tema Oil Refinery, also recorded negative equity throughout the same period.

Dividend payments to government remained low, with only Ghana Reinsurance Company and TDC Company Ltd paying dividends. Their combined payment was GH¢16 million, representing a 29.36% decline from 2024.

SIGA therefore cautioned that the improved performance should not be treated as an end in itself.

“The gains of FY2025 must not become a temporary rebound, They must become the foundation for a more efficient, competitive, inclusive and sustainable State-owned sector that creates value for the Ghanaian taxpayer and contributes meaningfully to national development,” the report concluded.

MA