Banking and Corporate Governance Consultant, Dr Richmond Atuahene, has questioned the quality of the financial turnaround recorded by Ghana’s State-Owned Enterprises (SOEs), arguing that the reported profits do not necessarily reflect improved operational efficiency.

His comments follow the latest State Interests and Governance Authority (SIGA) report, which showed that SOEs recorded a combined net profit after tax of GH¢19.80 billion in 2025.

The figure represents a sharp turnaround from the GH¢2.25 billion net loss recorded in 2024.

SOE revenues also increased by 28.12% to GH¢176.43 billion, while profit before interest and tax rose to GH¢25.49 billion.

The report attributed part of the improved financial performance to higher revenues and a significant improvement in foreign-exchange performance.

SOEs recorded net foreign exchange earnings of GH¢11.72 billion in 2025, compared with a GH¢12.01 billion foreign exchange loss in 2024. Finance costs also fell by 42.49%.

But Dr Atuahene believes the figures must be examined beyond the headline profit.

“As Professor Isaac Boadi of UPSA said, I look at it, and he called it a miracle. But if you dive deep into it, it’s not operational efficiency.”

He said the impact of foreign exchange gains means the reported profits cannot automatically be interpreted as evidence that the enterprises have become more efficient.

“If you are moved by foreign exchange gains by 60%, then you are not talking about efficiency.”

Dr Atuahene said the real test would come if the cedi begins to weaken.

“When the reality comes, you’re going to have a hit. When I mean the reality, should the cedi begin to go downwards, then you’ll begin to see that we have a big problem.”

He also raised concerns about the debt exposure of state enterprises.

SIGA’s 2025 report puts total SOE liabilities at GH¢281.99 billion, with the Electricity Company of Ghana (ECG) alone accounting for GH¢82.31 billion.

Dr Atuahene said the scale of the debt should worry policymakers.

“And also, the magnitude of the debt, GH¢282 billion. If you run an economy with such a debt overhang, I don’t know what you can do.”

He warned that persistent weaknesses among SOEs could eventually lead to broader economic problems.

“That is where we should have a little bit of concern and worry, because a time will come when these non-performing, whether they call it profit or non-performing, they’re going to basically destroy the economy.”

He said reforms of SOEs remain critical under Ghana’s engagement with the International Monetary Fund.

“That is the reason why, in the IMF’s PCI, one of the ten fundamental reforms that we are being required to do is to look at these SOEs, which is very, very important.”

Dr Atuahene said Ghana’s challenge with state enterprises has persisted for decades.

“If we go the way we are going with SOEs, one day we will get up, and the country will come to a grinding halt.”

He also questioned whether financial profit alone is the right measure of performance for enterprises providing essential public services.

“Produce the figures, talk about profit, but the reality, like Professor said, what is the output?”

He pointed to the quality of services being delivered to citizens.

“You’re not getting your light on. You’re not getting your water. But these people are being char-, these people are charging every now and then, declaring profit.”

For Dr Atuahene, the key issue is therefore how Ghana measures the performance of its state-owned enterprises.

“Are we measuring it by what measure? What metrics are we using?”