Board appointments of SOEs should only be based on merit – IMF to government

The International Monetary Fund (IMF) has suggested that the appointment of boards for state-owned enterprises (SOEs) in Ghana should be based solely on merit. It also urges the government to submit audited financial statements promptly. In its latest report on Ghana, the IMF emphasized that enhancing SOE governance and oversight is crucial to managing fiscal risks, as these enterprises collectively continue to operate at a loss, with mounting liabilities straining the central government's resources.

Furthermore, the IMF contends that a thorough examination of the SOE portfolio is necessary to evaluate the justification for state ownership and to prioritize oversight of entities that are strategically vital. The report also highlighted the urgent need to enhance tax compliance, which remains a significant challenge, despite the implementation of digital tools.

The IMF attributes this to structural weaknesses within the Ghana Revenue Authority (GRA), limited application of risk-based approaches, and operational inefficiencies, such as delays in the VAT refund process, which has yet to be fully digitized. The IMF stressed that strengthening Public Finance Management (PFM) systems is essential to building upon the gains made under the Extractive Industries Transparency Initiative (EITI), specifically by expanding the coverage of the Government Information Management System (GIFMIS) to encompass all central government entities, utilizing the integrated GIFMIS and GHANEPS platforms, adopting competitive procurement practices instead of relying on single-source tenders, and achieving comprehensive visibility over government accounts to effectively implement the Tax System Assessment (TSA).

Lastly, as public investment continues to increase, the IMF pointed out that reinforcing public investment management is imperative. The 2025 Public Investment Management Assessment (PIMA) underscores persistent weaknesses in project appraisal, underscoring the necessity to ensure that all capital projects entering the budget adhere to the legislated appraisal and selection procedures.