Yaw Appiah Lartey of Deloitte Africa has said that the practice of successful state-owned enterprises (SOEs) taking over underperforming ones is a good strategy and should be encouraged by the government.
Speaking on Joy FM’s Super Morning Show, during a discussion on the SIGA annual State Ownership Report, he said: “The ones that are performing well are acquiring those that are under-performing. That’s a good strategy, and we should encourage it.”
He cited the recent example of Ghana Gas acquiring the loss-making Ghana Cylinder Manufacturing Company, noting that such moves can help revive weak enterprises while reducing the financial burden on the state.
Lartey emphasized that government support should focus on sectors where SOEs are already performing well, including financial services and construction, to maximize dividends and create employment opportunities.
Lartey also highlighted that consistently loss-making SOEs, particularly in sectors like energy, continue to weigh heavily on state finances. He suggested that such enterprises could attract private sector participation or undergo restructuring to improve efficiency and sustainability.
He further praised SOEs in the financial services and construction sectors, such as Ghana Reinsurance, CDC, and the Ghana Housing Authority, for consistently delivering results. According to him, supporting these strong performers not only ensures steady dividends for the government but also provides jobs and stimulates economic growth.
By encouraging strong SOEs to take over weaker ones and focusing resources on high-performing sectors, Lartey argued that the government could build a more efficient and sustainable portfolio of state-owned enterprises, reducing losses while promoting growth and employment across the economy.
