Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has highlighted severe financial and operational challenges faced by state-owned enterprises (SOEs). Most SOEs report significant losses, and current profits, such as COCOBOD’s GH₵2.2 billion, are deemed artificial due to debt suspensions. The National Economic Dialogue is focusing on urgent reforms to restructure these enterprises and stabilize the economy, with key recommendations anticipated for the upcoming National Budget.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has expressed significant concern regarding the financial and operational crises facing the nation’s state-owned enterprises (SOEs) and joint venture companies. During the National Economic Dialogue held on March 3, he emphasized the need for immediate reforms to avert further economic decline. According to Dr. Forson, nearly all SOEs are currently experiencing severe financial difficulties, illustrating a troubling trend in the national economy.
Dr. Forson specifically noted that state-owned enterprises such as the Electricity Company of Ghana (ECG) and the Agricultural Development Bank (ADB) are heavily in debt. He remarked, “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.” This highlights the urgent need for remedial actions to address the turmoil within these key sectors.
The Finance Minister also addressed the reported profit of GH₵2.2 billion by COCOBOD for the fiscal year 2023, describing it as misleading. He indicated that this profit is largely a result of debt suspension arrangements which have allowed COCOBOD to evade servicing its debt obligations. Dr. Forson stated, “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.”
The National Economic Dialogue, held at the Accra International Conference Centre, convened a diverse group of stakeholders, including policymakers, economists, business leaders, and civil society organizations. The discussions aimed to generate strategies for revitalizing Ghana’s economy, with the recommendations expected to be integrated into the upcoming National Budget. There is a collective anticipation that effective measures will be implemented to restructure struggling SOEs and stabilize the economic landscape of the country.
In summary, the financial state of Ghana’s state-owned enterprises is critically concerning, with nearly all operating at a loss. The Finance Minister’s remarks underscore the necessity for urgent reforms, particularly in response to misleading profit reports such as that of COCOBOD. The ongoing National Economic Dialogue will play a crucial role in shaping strategies for economic revitalization, with expectations for comprehensive measures aimed at reestablishing the health of SOEs and the overall economy.
Original Source: www.graphic.com.gh
