Gov’t repositions GIHOC to drive 24-hour economy agenda

The government has announced plans to reposition GIHOC Distilleries Company Limited through a comprehensive financial and operational restructuring programme aimed at aligning the company with its 24-hour economy policy.

The intervention, according to officials, is designed to strengthen the company’s balance sheet, enhance its operational capacity, and restore its competitiveness within Ghana’s beverage manufacturing industry.

The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, disclosed the plans while commissioning a new fleet of vehicles to support GIHOC’s distribution operations. She emphasised that resolving long-standing structural and financial challenges remains central to repositioning the state-owned enterprise for sustained growth.

“This investment directly addresses one of GIHOC’s most critical operational gaps, the inability to efficiently and effectively reach a distribution network and retail point across the country. My ministry recognizes that asset injection alone is insufficient to drive a sustainable turnaround,” she stated.

She added that the government would work closely with the company’s board and management to confront its structural constraints.

“Accordingly, government will work in collaboration with the board and management of GIHOC to address the company’s structural financial liabilities, review its operating model for long-term viability and explore opportunities to expand its production capacity under the 24-hour economy,” she said.

The Minister stressed that profitability and competitiveness must remain at the heart of the restructuring agenda.

“GIHOC must return to profitability and you must demonstrate that a state enterprise can compete efficiently and effectively in a liberalized market. These vehicles represent an investment of public resources, people’s taxes, including your own, and must be managed with accountability, discipline and a clear commercial strategy,” Elizabeth Ofosu-Adjare remarked.

Established in 1958, GIHOC holds a significant place in Ghana’s industrial history as West Africa’s first indigenous alcoholic beverage manufacturer. Its range of bitters, spirits and other beverages continues to enjoy strong brand recognition locally and in selected export markets.

However, the Minister acknowledged that, like many state-owned enterprises, GIHOC has faced persistent challenges over the years, including limited working capital, aging production infrastructure, and weaknesses within its distribution network. Addressing these constraints, she noted, forms part of the government’s broader strategy to revitalise productive public-sector enterprises and position them as drivers of industrial growth under the 24-hour economy framework.