Ghana’s State-Owned Enterprises in crisis – Finance Minister warns

The Minister of Finance, Dr Cassiel Ato Forson, has raised concerns over the dire financial and operational challenges confronting Ghana’s state-owned enterprises (SOEs) and joint venture companies, warning that urgent reforms are needed to prevent further economic decline.

Speaking at the National Economic Dialogue on Monday, March 3, Dr Forson painted a bleak picture of the state of SOEs, stating that most of them are struggling financially.

“SOEs and joint venture companies are showing mounting operational and financial risk. Almost all state-owned enterprises are in the red. From ECG to the ADB, almost all of them are in the red,” he revealed.

The Finance Minister also addressed COCOBOD’s reported profit of GH₵2.2 billion in 2023, describing it as misleading. He explained that the profit was artificial, as it was primarily the result of a debt suspension that allowed COCOBOD to avoid servicing its financial obligations.

“In fact, beginning from the year 2021, 2022, and 2023, you will see that COCOBOD posted some profit of GHS2.2 billion in the year 2023. This is artificial profit.

“This profit is because they failed to service their debt because of the debt suspension… This debt still exists, and so we will need to take action to restructure most of the SOEs,” Dr Forson stated.

The National Economic Dialogue, held at the Accra International Conference Centre, has gathered key stakeholders, including policymakers, economists, business leaders, and civil society organisations, to discuss strategies for revitalising Ghana’s economy.

With the government set to incorporate the dialogue’s recommendations into the upcoming National Budget, expectations are high that decisive measures will be introduced to restructure struggling SOEs and stabilise the country’s economy.