The World Bank has called for urgent reforms in the governance of Ghana’s State-Owned Enterprises (SOEs), emphasizing the need for professionalism and autonomy in board structures to enhance efficiency and financial stability.
Speaking at a High-Level Meeting with President John Dramani Mahama and chief executive officers of SOEs, World Bank Country Director Mr. Taliercio O’Brien stressed that weak governance has contributed to the poor performance of key institutions such as the Electricity Company of Ghana (ECG) and the Cocoa Board (COCOBOD), both of which are facing significant financial losses and operational inefficiencies.
Mr. O’Brien urged Ghana to adopt international best practices in SOE governance, citing successful models from Chile, Uruguay, and Namibia. He noted that Chile has set a benchmark by promoting independent and competent board structures, while Uruguay has improved SOE performance through performance-based contracts.
Key recommendations for Ghana’s SOE reforms included granting boards greater autonomy to make strategic decisions without political interference, ensuring a diverse and merit-based selection of board members with expertise in finance, management, and industry-specific knowledge, and enforcing performance targets with robust oversight mechanisms to enhance accountability.
“The World Bank is actively supporting Ghana’s efforts to reform its SOE sector,” Mr. O’Brien said, highlighting that the $115 million Public Financial Management for Service Delivery Programme would provide funding to strengthen the State Interests and Governance Authority.
The call for governance reforms aligns with broader efforts to revitalize Ghana’s SOEs, ensuring they contribute effectively to national development and economic growth.
