State-Owned Enterprises Dividend Contributions Plunge 45.5% as Industrial Sector Expands with New Machinery Launches and Pricing Disputes

The 2025 State Ownership Report has revealed a concerning 45.5% decline in dividend payments from State-Owned Enterprises (SOEs) to the government, plummeting from GHS 29.36 million in 2024 to just GHS 16.0 million. This sharp drop means SOE contributions accounted for less than one percent (0.92%) of the total GHS 1.746 billion in dividends received by the government during the period. The report highlights severe balance-sheet weaknesses across the sector, with only two entities—Ghana Reinsurance Company Limited (GHS 13 million) and the Tema Development Company (GHS 3 million)—meeting their dividend obligations. This fiscal shortfall has prompted urgent calls for the State Interests and Governance Authority (SIGA) to implement more robust corporate governance and financial sustainability measures to bolster national revenue and support economic recovery.

While the public sector faces fiscal challenges, the private industrial and construction sectors are seeing a surge in technological investment. Delta Equipment Limited, a subsidiary of the Mantrac Group, recently introduced the SEM brand of heavy machinery to the Ghanaian market, including wheel loaders, dozers, and motor graders targeted at the agriculture and infrastructure sectors. Simultaneously, SMT Ghana has expanded its footprint by launching the Dongfeng range of commercial vehicles in Kumasi. These moves are aimed at providing cost-effective solutions for the logistics and transportation sectors, with SMT Marketing Director Hilda Peasah emphasizing flexible financing options to help businesses navigate the current economic climate despite the broader fiscal contraction.

However, the business environment remains tense due to escalating disputes over pricing and operational costs. The Abossey Okai Spare Parts Dealers Association has vehemently rejected claims by the Ghana Private Road Transport Union (GPRTU) and the Ghana Road Transport Coordinating Council (GRTCC) that rising spare parts costs justify a proposed 30% hike in transport fares. The dealers described these claims as false and accused transport operators of attempting to extort the public. Meanwhile, the public policy think tank CUTS International has raised alarms over potential cartel behavior within the Chamber of Cement Manufacturers, Ghana (COCMAG). CUTS warned that a uniform GH12 demurrage surcharge on clinker could undermine market competition and urged manufacturers to determine prices independently based on their specific cost structures rather than through collective pricing arrangements.

In the regulatory and consumer protection space, agencies and industry leaders are pushing for greater formalization and safety. The National Petroleum Authority (NPA) utilized the Fetu Afahye celebration in Cape Coast to conduct extensive public education on petroleum safety and consumer rights, led by Chief Executive Godwin Kudzo Tameklo. In the beauty sector, Elsie Appau-Klu, founder of Ezel Fashion and Technical Advisor at the GRA, called for the establishment of a Cosmetology Council to formalize the largely informal beauty and wellness industry to drive youth employment. Additionally, the judiciary reinforced market integrity as the Asokwa Circuit Court fined a trader GH12,000 for selling counterfeit Amuzu Bitters, signaling a zero-tolerance approach to trademark forgery and consumer fraud.