SOEs record 35% reduction in losses in 2021 – Minister of State Enterprises

State-owned enterprises (SOEs) recorded a 35% reduction in losses from ¢2.6 billion in 2020 to ¢1.7 billion in 2021, Minister of State Enterprises, Joseph Cudjoe, has disclosed.

According to him, it is an impressive feat considering the economic challenges in 2021.

Though the losses posted are on the high side, it is important to note that this adds to the positive trend of reduction in aggregate losses by SOEs.

In 2019, a loss of ¢5.6 billion was recorded spanning 106 state entities. The figure was reduced to ¢2.6 billion in 2020, covering a total of 132 entities with 2021’s figure covering the audited reports of over 132 entities.

Speaking at the second edition of the Public Enterprises League Table, (PELT) Awards organised by the State Interest and Governance Authority (SIGA), Mr. Cudjoe emphasised the government’s effort to ensure the profitability of SOEs.

“The observation vindicates the president’s vision to turn public enterprises into positive performing ones. We have seen a decline in 2019. In 2019, it had about ¢5.1 billion in terms of total loss across the enterprises. In 2020 the loss came to about ¢2.6 billion and in 2021, the figure I have seen is about ¢1.7 billion.”

“When you are restructuring a company into profitability, it always goes through that declining stage where a heavy indebtedness becomes lightened and till we achieve a breakeven point and then you experience profitability”, he added.

The Director General of the State Interest and Governance Accountability, Ambassador Edward Boateng stated his outfit’s commitment to ensure state enterprises contribute a chunk of the country’s Gross Domestic Product.

“For SOE profit to move from 5% in 2017 to 21% in 2023 is a major achievement. But they can do better. The biggest contributor to the country’s tax net in China is SOEs. So we believe that in the years to come if we can do what we are doing well, SOEs should be able to contribute massively to the economy.”

The Public Enterprises League Table awards organised by the State Interest and Governance Authority recognize the most outstanding state entity based on key metrics as defined by the public finance.

Several state-owned institutions were awarded in various categories.

The Food And Drugs Authority topped the league table followed by the Ghana Civil Aviation, the Ghana National Petroleum Commission, and the Bulk Oil Storage and Transportation Ltd.