Ghana’s State-Owned Enterprises Face Crisis, Finance Minister Warns

Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has voiced serious concerns over the financial state of the country’s state-owned enterprises (SOEs), indicating they are predominantly operating at a loss. He criticized the purported profits of COCOBOD, labelling them as artificial due to unresolved debt. The National Economic Dialogue aims to foster strategies for economic revitalization and SOE restructuring.

In a recent address at the National Economic Dialogue, the Minister of Finance, Dr. Cassiel Ato Forson, expressed serious concerns regarding the financial challenges facing Ghana’s state-owned enterprises (SOEs) and joint venture companies. He emphasized the necessity of immediate reforms to avert further economic deterioration, highlighting that most SOEs are currently operating at a loss.

Dr. Forson noted that nearly all state-owned businesses are experiencing significant financial difficulties, stating, “Almost all state-owned enterprises are in the red. From ECG to the ADB, almost all of them are in the red.” This alarming trend underscores the urgent need for a strategic overhaul of these organizations.

Additionally, the Finance Minister criticized the reported profit of GH₵2.2 billion by COCOBOD for 2023, characterizing it as misleading and derived from an “artificial profit” created by a debt suspension. He pointed out that this superficial profit does not reflect the underlying financial health of COCOBOD, as the debt remains unresolved.

Given these realities, Dr. Forson remarked, “This debt still exists, and so we will need to take action to restructure most of the SOEs.” The national dialogue, convened at the Accra International Conference Centre, aims to unite stakeholders from various sectors to identify solutions for revitalizing the economy and addressing SOE challenges.

As the government prepares to integrate the insights gleaned from this discourse into the forthcoming National Budget, there is a collective anticipation for decisive actions that will restructure struggling SOEs and stabilize Ghana’s economic landscape.

In conclusion, Ghana’s state-owned enterprises are grappling with significant financial challenges that require urgent reforms as outlined by Finance Minister Dr. Cassiel Ato Forson. The misleading profitability of COCOBOD further complicates the issue, emphasizing the need for comprehensive restructuring. The National Economic Dialogue seeks to address these crises through collaborative efforts aimed at revitalizing the economy and ensuring the sustainability of SOEs.

Original Source: www.graphic.com.gh