Only 11 Out Of 98 SOEs/ JVCs Pay Dividends To Gov’t

Out of a total of 98 State-owned Enterprises (SOEs) and Joint Venture Companies (JVCs), only 11 brought in dividends to the State.

This is according to the 2019 State Ownership Report.

The fruitful entities are of two SOEs and nine Joint Venture Companies including one mining company.

The JVCs contributed 83.01% to the dividend receipts in 2019 while SOEs and mining companies contributed 16.91% and 0.08% respectively.

But while SOES paid ¢10.4 million dividend to government, JVCs paid ¢51.05 million. AngloGold Ashanti, the mining company, paid ¢50,600million.

Also, GCNET, a joint venture company paid dividend of ¢20 million to the State, the largest. It was followed by GCB Bank and Ghana Reinsurance Company –a state-owned company, which paid dividends of ¢16.9 million and ¢7.3 million respectively. 

GOIL, African Reinsurance and TDC all paid dividends of ¢5.1m, ¢1.29 million and ¢1.4 million respectively.

An amount of ¢85.07 million was projected as dividend/surplus receipts from specified entities in 2019 according to the report. However, the total amount of dividend received was ¢61.50 million, representing a performance of 72.30%. 

The shortfall was mainly due to a huge decrease in the dividend received from mining companies.

Dividend contribution of mining companies decreased by 99.95% from ¢112.07 million in 2018 to ¢0.051 million in 2019, due to declining profitability.

Also, dividend receipts from SOEs decreased by 20% from ¢13 million in 2018 to ¢10.40 million in 2019.

However, dividend receipts from JVCs excluding mining companies increased significantly (174.76%) from ¢18.58 million in 2018 to ¢51.05 million in 2019.

LEAVE A REPLY

Please enter your comment!
Please enter your name here