‘Even GIHOC that produces alcohol is making losses’ – Finance Minister expresses surprise

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The Finance Minister has expressed astonishment over the financial struggles of State-Owned Enterprises (SOEs), particularly GIHOC Distilleries, a company that produces and sells alcoholic beverages, yet continues to record substantial losses despite the high-demand nature of alcohol.

Speaking during a meeting with Chief Executives of specified entities under the State Interest and Governance Authority (SIGA) on Thursday, March 13, the Minister highlighted worrying figures, revealing that GIHOC Distilleries recorded a loss of GH₵25.1 million in 2022 and a further GH₵ 25.5 million in 2023.

“Mr President, this one surprises me. Even the alcohol-making company is making losses,” he remarked, underscoring the severity of the challenges facing State-owned enterprises.

The losses at GIHOC are part of a broader trend of financial under-performance among SOEs. According to the Finance Minister, the Electricity Company of Ghana (ECG), for instance, recorded consistent losses over the years—GH₵ 1.46 billion in 2021, GH₵ 8 billion in 2022, and GH₵ 5.96 billion in 2023. Similarly, the Ghana Grid Company (GRIDCo) reported losses of GH₵ 93.5 million in 2022 and GH₵ 8.6 million in 2023.

Graphic Communications Group also faced financial difficulties, with losses increasing from GH₵ 3 million in 2021 to GH₵ 4.4 million in 2022, and a sharp rise to GH₵ 15.1 million in 2023. Meanwhile, the Ghana Cocoa Board, which remains the largest loss-making SOE, reported losses of GH₵ 2.4 billion in 2021, GH₵ 3.8 billion in 2022, and even more in 2023.

The Finance Minister stressed that these continuous losses do not reflect the potential of state enterprises and pose significant fiscal risks to the economy.

“Unfortunately, some of these SOEs are becoming a major burden on government finances. ECG and Ghana Cocoa Board are among the most concerning,” he stated.

To address these challenges, he noted that the government plans to implement a “bold turnaround strategy” aimed at restoring profitability to these entities. This strategy includes capacity-building initiatives to enhance leadership and operational efficiency, strict corporate governance measures, and financial discipline to drive strategic decision-making.

Additionally, he stated that the Finance Ministry will work closely with the State Interests and Governance Authority (SIGA) to enforce compliance with financial reporting requirements under the Public Financial Management Act (Act 921).