Even alcohol companies made losses — Ato Forson shocked at GIHOC’s GHS25m deficit

Finance Minister Dr. Cassiel Ato Forson has expressed deep shock over the financial losses recorded by GIHOC Distilleries, an alcohol-producing state-owned enterprise, under the Akufo-Addo administration.

Speaking at a meeting with Chief Executive Officers of State-Owned Enterprises (SOEs), Dr. Forson highlighted the disturbing trend of mounting losses across several SOEs, singling out GIHOC as a particularly surprising case.

“GIHOC Distilleries reported a loss of GHS25.1 million in 2022 and GHS25.5 million in 2023. Mr. President, this one surprises me. Even the alcohol-making company is making losses,” he said.

The Finance Minister also outlined other worrying figures, including massive losses by utility and communication companies.

“The ECG, for example, has recorded consistent losses from the year 2021. In the year 2021, they made a loss of GHS1.46 billion, 2022, GHS8 billion, 2023 GHS5.96 billion,” Dr. Forson noted.

Additionally, he revealed:

“Ghana Grid Company lost GHS93.5 million in 2022 and GHS8.6 million in 2023.”

“Graphic Communications Group recorded consecutive losses of GHS3 million in 2021, GHS4.4 million in 2022, and GHS15.1 million in 2023.”

The Ghana Cocoa Board (COCOBOD) also featured prominently as the largest loss-making SOE, with Dr. Forson stating:

“Significant losses of GHS2.4 billion in 2021 and GHS3.8 billion in 2022.”

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Reacting to the widespread losses, President John Dramani Mahama issued a clear warning to non-performing SOEs, saying they will either be merged, privatized, or shut down as part of government’s broader effort to ensure public sector efficiency.

“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed. They will be merged, privatized, or shut down,” President Mahama declared.

The President emphasized that government will not continue subsidizing failing enterprises, insisting that SOEs must be profitable, competitive, and self-sustaining to ease the pressure on Ghana’s economy.

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