The International Monetary Fund (IMF) has called for a comprehensive overhaul of Ghana’s State-Owned Enterprises (SOEs), warning that some public entities continue to pose significant fiscal risks despite recent economic gains.
The Fund said the Government should undertake a strategic review of its SOE portfolio to determine which entities should remain under state ownership and which should be restructured, commercialised or divested.
In its latest Article IV Consultation Report, the IMF said Ghana had made significant progress in restoring macroeconomic stability, but weaknesses within some SOEs could undermine efforts to maintain fiscal discipline and debt sustainability.
It noted that several SOEs continued to incur losses and accumulate liabilities that could eventually become obligations of the Government.
The energy and cocoa sectors, it said, remained among the key sources of fiscal risks and therefore required stronger oversight, improved governance and sustained reforms.
The IMF stressed that effective implementation of SOE reforms would help reduce pressure on public finances, improve service delivery and support Ghana’s long-term economic development.
It also called for stronger corporate governance in public enterprises, including merit-based appointments to boards and management positions to enhance efficiency, accountability and financial performance.
The Fund further recommended the timely publication of audited financial statements by SOEs and other public entities to improve transparency, strengthen monitoring of fiscal risks and support informed policy decisions.
The report forms part of discussions on Ghana’s proposed three-year Policy Coordination Instrument (PCI), which is expected to guide the country’s economic reforms following the completion of the Extended Credit Facility programme.
Under the proposed arrangement, the Government is expected to implement reforms aimed at strengthening SOE governance and reducing the fiscal risks associated with public enterprises.
The planned reforms include reviewing and reclassifying SOEs, publishing audited financial statements and taking decisions on the restructuring or divestment of selected entities.
According to the IMF, stronger oversight of public enterprises would be critical to safeguarding Ghana’s recent gains in debt sustainability.
It said Ghana’s risk of debt distress had improved to moderate, supported by strong economic growth, fiscal consolidation and progress in debt restructuring.
The IMF also acknowledged progress in the banking sector, noting that state-owned banks, including Agricultural Development Bank, Consolidated Bank Ghana and National Investment Bank, had been recapitalised to meet regulatory requirements.
However, it said further reforms were required to address governance and operational challenges within parts of the financial sector.
