The State Interests and Governance Authority (SIGA) has directed the Bui Power Authority (BPA) to start paying dividends to the government of Ghana beginning from the 2025 financial year, as part of wider efforts to ensure state-owned enterprises contribute meaningfully to national revenue.
This directive was given during the annual general meeting of Bui Power Authority, where officials reviewed the performance of the power company. Despite reporting lower revenue in 2024, BPA recorded significant growth in profitability, a development that SIGA says should now translate into dividend payments.
According to BPA’s financial report, the company generated total revenue of $139.7 million in 2024, slightly above its target of $139.5 million. However, this figure represented an 11.1 percent decline compared to the previous year, mainly due to reduced power generation caused by lower water inflows into its hydro reservoir.
Even though the revenue fell, management said strict cost controls and efficiency measures helped the authority to post a net profit of $64.5 million, almost double its original profit target of $33.6 million. This strong profit performance has now placed fresh responsibility on the power company to reward its shareholder, which is the government of Ghana.
General Manager of Operations at SIGA, Mrs. Millicent Atuguba, who addressed stakeholders at the meeting, said it was time for the Bui Power Authority to stop being seen as a burden and instead be regarded as an important asset that contributes directly to Ghana’s economic development.
“Commercial entities like BPA must no longer be perceived as a burden but rather as a vital economic asset that drives Ghana’s socio-economic development, especially in the era of a reset agenda. For this reason, our expectations of BPA are straightforward, which are to be efficient, profitable, and to pay dividends to the government of Ghana,” she said.
She further explained that by the end of the 2025 financial year, SIGA expects BPA to demonstrate its commitment by paying a dividend for the very first time. According to her, this would mark the beginning of a reset in which state-owned enterprises (SOEs) will take their rightful place in the economy and significantly boost non-tax revenue for the government.
Bui Power Authority was established under the Bui Power Authority Act, 2007 (Act 740), with the mandate to develop a hydroelectric power project on the Black Volta River at Bui, and to explore any other potential hydro sites along the river. This mandate was later expanded through the Bui Power Authority Amendment Act, 2020 (Act 1046), which allowed the company to also invest in renewable energy and other clean energy alternatives in Ghana.
In recent years, BPA has been diversifying into renewable energy projects to complement its hydroelectric operations. This includes solar energy projects designed to improve power generation capacity and ensure sustainability even when water levels are low.
Analysts say the call for dividend payments by SIGA reflects a growing shift in Ghana’s economic management, where SOEs are expected to move away from over-dependence on government subventions and instead generate revenue that can support the national budget.
SOEs in Ghana have often been criticized for inefficiency and weak financial management, leading to huge losses that place additional pressure on government finances. However, examples like BPA’s recent profitability are being seen as signs that reforms are working.
Economic observers note that if BPA successfully begins dividend payments in 2025, it could serve as a model for other state-owned enterprises in Ghana, proving that public companies can deliver both reliable services and financial returns.
Mrs. Atuguba emphasized that dividend payment is not just about government revenue, but also about instilling a culture of accountability and performance among state enterprises. “When SOEs deliver profits and dividends, it shows taxpayers that their investments in these institutions are paying off, while also reducing pressure on government borrowing and taxes,” she said.
As Ghana continues to push towards renewable energy development and energy security, the performance of Bui Power Authority will remain critical. The authority’s ability to balance hydroelectric power with solar and other renewable options could determine its future growth and capacity to remain profitable.
Stakeholders at the meeting, including government officials, industry experts, and community representatives, welcomed the directive, noting that dividend payment would help broaden Ghana’s revenue base at a time when the country is working to stabilize its economy and reduce debt dependence.
With net profit almost doubling its target, many will be watching closely to see if Bui Power Authority fulfills its dividend obligation to the state by 2025 as instructed by SIGA.
