By Joshua AMLANU & Christabel Danso Abeam
Experts have emphasised the urgent need for a complete reimagining of how state-owned enterprises (SOEs) in Ghana are managed and operated.
The financial performance of SOEs came under scrutiny with statistics revealing an aggregate loss of GH¢1.74billion in 2021. While this represented an improvement over 2020, experts agreed that the continued losses are untenable and indicative of deeper structural issues.
During a breakout session at the 13th Ghana Economic Forum held last week Thursday, focusing on the future of SOEs as catalysts for national development, experts highlighted critical shortcomings in the current system and proposed sweeping reforms.
Kwadwo Boateng, Senior Manager-Governance, Risk and Compliance, KPMG Ghana, set the tone for discussion by emphasising the crucial role of leadership.
“We need people with integrity in order to do things the right way, do things that will benefit Ghana at the end of the day,” Boateng stated.
He stressed the importance of leaders with “the right mindset” who can drive clear agendas and strategies to propel the country forward.
Elorm K. Foli, CEO-EK Brand Consult, proposed a radical shift in approach. “Is there an opportunity to put GH¢1billion in some sort of government-funded incubator where, worst case scenario, none of the companies are profitable?” Foli asked.
This suggestion aimed at potentially creating new industries while giving government equity in successful ventures, underscoring the need for creative solutions.
Ferdinand D. Adadzi, Partner at AB & David and Law Lecturer at GIMPA Law School, called for a fundamental overhaul of accountability measures.
“We need to determine if this is something that we need? If we still want to maintain it, then we need to have a clear plan on how we perform going forward,” Adadzi stated.
He advocated for “clear targets” with tangible consequences for leadership failing to meet objectives.
The complex and often counterproductive governance structure of SOEs emerged as a central theme. One panellist described the multiple reporting lines: “You take an SOE, which is set up as a company…but here it is, we have a situation where the appointing authority is the president”. This was contrasted sharply with more streamlined private sector models, highlighting the need for structural reform.
Nana Owusu Banahene, a fintech and management expert, emphasised the importance of external accountability and transparency.
“We should hold them accountable, by including the media and CSOs,” he said.
He suggested that regular media scrutiny of individual SOEs could help expose issues and drive improvements, representing a shift toward more public engagement in SOE oversight.
Experts proposed several radical changes to reshape Ghana’s SOE sector. These included restructuring SOEs to function more like businesses, with reduced political interference and clearer lines of accountability. The panel also advocated developing a merit-based system for appointing SOE leadership, including a pool of qualified candidates with rigorous training in governance and relevant technical skills.
Another key proposal involved reassessing government’s role in various industries, potentially shifting toward a model wherein the state provides capital but leaves management to private sector entities.
Experts also called for implementing a comprehensive digital transformation strategy for SOEs, focusing not just on technology but also cultivating a performance-driven culture.
The panellists urged looking to successful SOE models in other countries, such as Singapore’s, for innovative practices that could be adapted to the Ghanaian context.
Mr. Banahene noted, “We need to do a digital transformation; not just digitalisation, but transformation of the mindset where people understand that when I do this and the organisation improves, it is a benefit to me”.
The discussion highlighted a growing recognition that incremental changes are insufficient to address the deep-rooted challenges facing Ghana’s SOEs. Instead, experts called for a fundamental rethinking of the entire SOE ecosystem – from governance structures and appointment processes to performance metrics and accountability mechanisms.
