State-Owned Enterprises Struggling: Finance Minister highlights widespread losses

At the launch of the 2025 National Economic Dialogue in Accra, Finance Minister Dr. Cassiel Ato Forson revealed that almost all state-owned enterprises (SOEs) are operating in financial distress, with major institutions like the Electricity Company of Ghana (ECG) and Agricultural Development Bank (ADB) struggling under heavy losses.

The two-day event, held at the Accra International Conference Centre, brings together government officials, economic experts, business leaders, civil society groups, and development partners to discuss strategies for strengthening Ghana’s economic resilience.

Dr. Forson painted a grim picture of Ghana’s public sector finances, stating that many SOEs are running at a loss and are dependent on government bailouts to survive.

“The energy sector alone is a ticking time bomb, costing about 2% of GDP annually. The ECG continues to suffer from high distribution losses, with only 62% of the total energy purchased being collected,” he stated.

Additionally, the COCOBOD, Ghana’s cocoa regulatory body, has been plagued by rising debts, with total liabilities reaching GHS 32.5 billion. The sector has suffered a nearly 50% drop in production over the past three years, while smuggling and poor pricing policies have exacerbated financial losses.

Dr. Forson emphasized that these losses are unsustainable and require urgent reforms. He noted that without decisive intervention, the financial strain on state institutions could further destabilize the national economy.

The outcomes of the National Economic Dialogue are expected to shape the 2025 National Budget, which Dr. Forson is set to present on March 11, 2025.

Stakeholders anticipate bold economic policies and restructuring plans to address Ghana’s growing fiscal crisis.

Read Dr. Cassiel Ato Forson’s full presentation below:

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