The International Monetary Fund (IMF) has raised concerns about the continued increase in liabilities among Ghana’s State-Owned Enterprises (SOEs), warning that the growing debt burden could pose significant fiscal risks to the government.

According to the IMF, the combined liabilities of Ghana’s SOEs reached approximately GH¢282 billion in 2024, equivalent to about 25% of the country’s Gross Domestic Product (GDP).

The Fund noted that the growth in liabilities has significantly outpaced the growth of assets. SOE liabilities increased from GH¢35 billion in 2015, representing about 19% of GDP, to GH¢282 billion in 2024.

The Electricity Company of Ghana (ECG) emerged as the largest contributor to the liabilities, accounting for approximately GH¢71 billion, or about 6% of GDP. The Volta River Authority (VRA) and the Ghana National Petroleum Corporation (GNPC) were also identified among the major contributors.

The IMF said the concentration of liabilities among a few highly leveraged state-owned enterprises remains a major concern, particularly because some of the debts are denominated in foreign currencies or carry implicit government backing.

The Fund further highlighted risks within the energy sector, noting that several power purchase agreements are denominated in US dollars and backed by government guarantees. These arrangements could expose the government to additional foreign-exchange and refinancing pressures.

Despite the growing liabilities, SOEs remain significant contributors to Ghana’s economy. Entities reporting to the State Interests and Governance Authority (SIGA) generated total revenue of GH¢133.7 billion in 2024, equivalent to about 11.5% of GDP.

The IMF also reported that the total assets of the SOE portfolio stood at approximately GH¢395 billion in 2024, representing about 34% of GDP.

The concerns were contained in an IMF Technical Assistance Report on Ghana titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance and Investment Implementation.”

The report underscores the need for stronger financial oversight, improved governance and effective management of state-owned enterprises to prevent their growing liabilities from creating further pressure on Ghana’s public finances.