Finance Minister, Dr. Cassiel Ato Forson, has highlighted the significant operational and financial challenges facing state-owned enterprises (SOEs) and joint venture companies in Ghana.
Speaking at the National Economic Dialogue on Monday, March 3, Dr. Forson expressed concern over the dire financial health of these entities, stressing the urgent need for restructuring.
“SOEs and joint venture companies are showing massive operational and financial risks. Almost all state-owned enterprises are in the red. From ECG to ADB, nearly all of them are struggling,” Dr. Forson remarked.
The Finance Minister further pointed out that while COCOBOD reported a GHS2.2 billion profit in 2023, this was an artificial gain resulting from a debt suspension, which allowed the entity to bypass servicing its debt. Dr. Forson emphasized that the underlying debt remains and must be addressed for long-term financial stability.
“In fact, beginning from the year 2021, 2022, and 2023, you will see that COCOBOD polled 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 explained.
The National Economic Dialogue, held at the Accra International Conference Centre, has brought together policymakers, economists, business leaders, and civil society organizations to discuss key economic strategies. The outcomes of the dialogue are expected to shape policies aimed at addressing Ghana’s economic challenges and driving long-term growth.
As the government prepares to incorporate the dialogue’s outcomes into the forthcoming National Budget, there is growing anticipation that concrete measures will be implemented to address the financial risks faced by state-owned enterprises and ensure the country’s economic stability.
