SOEs Face Pressure as BOST Rebrands, Joint Ventures Deliver GH¢1.5bn Profit, and Bui Power Surges Despite Challenges

Ghana’s state-owned enterprises (SOEs) are once again under scrutiny as regulators demand stronger accountability, even as joint ventures (JVs) deliver impressive profits and Bui Power Authority posts strong results despite mounting arrears.

BOST Ordered to Deliver Profit and Dividends by 2025

The Bulk Energy Storage and Transportation Company (BOST), soon to operate as BOST Energies, has been tasked to turn a profit and declare dividends by the end of 2025. The directive, issued at the company’s Annual General Meeting (AGM), comes as the State Interests and Governance Authority (SIGA) pushes loss-making SOEs to strengthen their financial performance.

Prof. Michael Kpessa-Whyte, SIGA’s Director-General, stressed the need for cost optimisation, revenue generation, and asset maximisation, noting that accountability must extend beyond regulators to the Ghanaian people.

Energy Minister John Jinapor praised BOST’s operational improvements but urged the company to align more strongly with Ghana’s energy transition agenda, ensuring sustainability alongside petroleum operations. The rebrand to BOST Energies is intended to reflect this shift, as the company expands its focus to sustainable and cleaner energy solutions.

Joint Ventures Post GH¢1.5bn Profit as SOEs Sink in Debt

While many SOEs continue to rack up losses, Ghana’s joint ventures rebounded strongly, delivering a combined GH¢1.51 billion profit in 2024, reversing the GH¢1.33 billion loss recorded the previous year.

According to SIGA’s 2024 report, JVs grew assets by nearly 40 percent to GH¢71 billion, with minority state-owned firms contributing the bulk of government dividends. By contrast, SOEs posted a staggering GH¢9.67 billion loss, largely due to excessive finance costs despite a 28 percent jump in revenue.

Finance Minister Dr. Cassiel Ato Forson has called for urgent SOE reforms, citing poor governance, weak reporting, and mounting debt as major risks to Ghana’s fiscal stability.

Bui Power Authority Posts US$64.5m Profit Despite Liquidity Pressures

The Bui Power Authority (BPA) nearly doubled its 2024 profit target, reporting US$64.5 million net profit, even as revenues dipped 11 percent to US$139.7 million.

The hydropower producer achieved a Plant Availability Factor of 93 percent and starting reliability of 99 percent through rigorous maintenance and operational efficiency. However, BPA faces liquidity challenges, with receivables rising to US$1.2 billion, largely due to unpaid bills from the Electricity Company of Ghana (ECG).

Board Chairman Ambassador Kwadwo Nyamekye-Marfo warned that these arrears threaten future capital projects. Nonetheless, BPA is pursuing a hydro-solar hybrid strategy to diversify revenue streams and reinforce long-term sustainability in line with Ghana’s renewable energy goals.

Investor’s Insight – GCB Hits All-Time High with 57.14% YTD Gains

On the capital markets, GCB Bank shares surged to an all-time high, recording an impressive 57.14 percent year-to-date gain. This reflects growing investor confidence in Ghana’s banking sector, even as SOEs face mounting fiscal challenges.

The Cedi Board highlights the stark contrast between profitable JVs and struggling SOEs. While entities like Bui Power continue to demonstrate resilience, the government’s demand for profitability and accountability from firms like BOST is a clear signal that state-owned enterprises must reform to ease fiscal pressure and drive national growth.

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