President Mahama and IMF Sound Alarm Over GH¢282 Billion Debt Burden of State-Owned Enterprises

President John Dramani Mahama has warned of a deepening financial crisis within Ghana’s State-Owned Enterprises (SOEs), revealing that total liabilities reached approximately GH¢282 billion by the end of 2025. Speaking at the State Interest and Governance Authority (SIGA) Governing Boards and CEOs Conference on September 10, 2026, President Mahama highlighted a staggering aggregate deficit of GH¢10.48 billion among certain state entities, where liabilities of GH¢382.75 billion have far outstripped assets of GH¢341.6 billion. These figures corroborate a recent Technical Assistance Report from the International Monetary Fund (IMF), which expressed grave concern over the rising debt of SOEs, now accounting for 25% of Ghana’s Gross Domestic Product (GDP), up from 19% in 2015.

The IMF report underscores a significant disconnect between government reform efforts and actual financial outcomes. While SOE revenues have seen a massive nominal increase—climbing from GH¢19 billion in 2015 to GH¢133 billion in 2024—the Fund notes that structural weaknesses continue to plague the sector. Key issues include liquidity constraints, non-cost reflective tariffs, and the persistent politicization of board appointments. Furthermore, the IMF pointed to inefficiencies caused by overlapping responsibilities between the Ministry of Finance and SIGA, suggesting that while oversight has improved, implementation gaps remain a major barrier to fiscal health and accountability.

The energy sector remains the primary driver of this fiscal instability, with the Electricity Company of Ghana (ECG) alone accounting for GH¢71 billion in liabilities. The IMF warned that the heavy reliance on foreign-currency-denominated debt and obligations under power purchase agreements has made the national economy increasingly vulnerable to external shocks and refinancing risks. In response to these challenges, the Ministry of Energy has engaged a transaction advisor to evaluate private sector participation in ECG’s operations. A formal report containing recommendations for the government is expected to be submitted in the first week of October 2026, though the Trades Union Congress (TUC) has already expressed reservations regarding the lack of consultation in this process.

Moving forward, President Mahama has called for urgent and decisive action from sector ministries, SIGA, and the respective boards of these enterprises to reverse the trend of mounting losses. The IMF has echoed this urgency, recommending more streamlined fiscal risk assessments and stricter compliance with performance standards. As the government prepares to review the upcoming private sector participation report for the energy sector, the focus remains on whether these long-standing structural reforms can finally be translated into sustainable financial performance and a reduced burden on the national treasury.