Finance Minister Dr. Cassiel Ato Forson has sounded the alarm over the precarious state of Ghana’s state-owned enterprises (SOEs) and joint venture companies, warning that their financial instability poses a major risk to the national economy.
Addressing stakeholders at the National Economic Dialogue on Monday, March 3, Dr. Forson painted a grim picture of SOEs, revealing that most of them are running at a loss and require urgent intervention.
“Almost all state-owned enterprises are in the red. From ECG to ADB, they are struggling financially, and if immediate steps are not taken, their continued losses will weigh heavily on the economy,” he cautioned.
One of the most striking revelations from Dr. Forson’s address was the case of COCOBOD, which reported a profit of GHS2.2 billion in 2023. However, the Finance Minister dismissed this figure as misleading, explaining that the profit was artificial, stemming from the temporary suspension of debt servicing rather than actual financial gains.
“This profit exists because COCOBOD was not servicing its debts due to the debt suspension,” he explained. “The underlying debt still remains, and we must take decisive steps to restructure these entities before the situation worsens.”
The National Economic Dialogue, currently underway at the Accra International Conference Centre, has gathered top policymakers, business leaders, economists, and civil society organizations to discuss solutions to Ghana’s economic challenges. One of the critical areas of focus is the restructuring of SOEs to ensure their long-term viability.
With the outcomes of the dialogue expected to influence the upcoming National Budget, there is growing anticipation that the government will introduce concrete measures to reform struggling SOEs, restore financial discipline, and drive sustainable economic growth.
As Ghana navigates its economic recovery efforts, Dr. Forson’s warnings highlight the urgent need for bold reforms to prevent further fiscal deterioration and ensure that state-owned enterprises contribute meaningfully to national development rather than being a drain on public resources.
