IMF: Ghana's SOE reforms fail to improve financial performance

The International Monetary Fund (IMF) reports that a decade of government reform efforts in Ghana has failed to improve the financial performance of State-Owned Enterprises (SOEs). Despite a significant increase in absolute revenues—rising from GH¢19 billion in 2015 to GH¢133 billion in 2024—persistent structural weaknesses continue to hinder overall performance.

Energy and commodity-sector SOEs are identified as the primary drivers of financial strain. Key issues include liquidity constraints, the accumulation of arrears, and the use of non-cost reflective tariffs. Additionally, the financing costs of foreign currency-denominated debts have contributed to net losses, which fluctuated at approximately 1.0% of GDP between 2016 and 2024.

The IMF noted a disconnect between reform progress and tangible gains, citing unaddressed constraints such as quasi-fiscal activities and weak enforcement of budget constraints. While the IMF welcomed the Ministry of Finance’s increased oversight and strengthened fiscal risk assessments, it highlighted challenges regarding data completeness, timeliness, and the duplication of parallel fiscal risk reports.