Underperforming SOEs Face Merger, Privatisation or Shutdown – Finance Ministry
Government has issued a strong warning to State-Owned Enterprises (SOEs) to improve operational performance or face dissolution, as part of renewed efforts to enhance efficiency and fiscal discipline within the public sector.
The Deputy Minister for Finance, Thomas Nyarko Ampem, delivering remarks on behalf of the Finance Minister, Dr Cassiel Ato Forson, at a stakeholder engagement with SOEs and Specified Entities, stated that loss-making entities will no longer be tolerated under the government’s economic reset agenda.
Speaking under the theme “Leveraging Public Assets for Shared Prosperity,” Mr Ampem indicated that the macroeconomic environment has significantly improved, leaving underperforming SOEs with limited justification for continued inefficiencies.
“The government has stabilised the economy and created favourable conditions for SOEs to perform. They are now running out of excuses for non-performance,” he said.
Reiterating earlier policy direction outlined by President John Dramani Mahama, the Deputy Minister noted that underperforming SOEs will be reformed, merged, privatised, or shut down, with a strong focus on governance, fiscal discipline, and operational efficiency.
He highlighted recent macroeconomic gains, including a decline in inflation from 23.8 percent in January 2025 to 3.3 percent in February 2026, improved exchange rate stability, and a reduction in the Bank of Ghana’s policy rate.
Despite these gains, Mr Ampem stressed that SOEs must transition from being fiscal liabilities to contributors to government revenue.
He raised concerns about persistent inefficiencies, particularly in the energy sector, where government has spent approximately $1.47 billion to address shortfalls. The Electricity Company of Ghana (ECG), he noted, continues to record losses of about 40 percent of power due to technical and commercial inefficiencies.
In the financial sector, the Deputy Minister disclosed that government injected over GH¢1 billion into the National Investment Bank (NIB) and Agricultural Development Bank (ADB) in 2025, while also advancing plans to convert COCOBOD’s GH¢5.8 billion legacy debt into equity.
“These interventions pose significant fiscal risks and must not continue unchecked,” he cautioned.
Mr Ampem, however, commended improved performance among some SOEs, noting that the Ghana Ports and Harbours Authority (GPHA), Ghana Reinsurance Company Limited, and TDC Ghana Limited collectively paid GH¢329.34 million in dividends in 2025, compared to GH¢28.7 million in 2024.
He noted that while the improvement is commendable, consistency and compliance remain critical challenges.
The Deputy Minister further underscored the importance of adherence to reporting and governance standards under the State Interests and Governance Authority (SIGA), warning that non-compliant entities will face sanctions, with boards and management to be held accountable.
He concluded by urging SOEs to operate with discipline, transparency, and efficiency, stressing that public enterprises must deliver value to citizens or risk being dissolved.
The stakeholder meeting was attended by key government officials, including Vice President Jane Naana Opoku-Agyemang, and focused on repositioning public enterprises to better support national development.
