Policy coordination reforms must target ECG and other SOEs – Prof Bokpin
Economist and Professor of Finance, Professor Godfred Bokpin, has called for stronger reforms targeting the Electricity Company of Ghana (ECG) and other state-owned enterprises, warning that their inefficiencies continue to put pressure on Ghana’s finances.
Ghana's economy has lost between 2.5% and nearly 3.2% of its GDP over the past 15 to 20 years due to inefficiencies in state-owned enterprises, according to Professor Godfred Bokpin, an economist and finance professor. During a discussion on JoyNews’ Newsfile, Prof Bokpin highlighted that these losses have been primarily linked to institutions such as the Electricity Company of Ghana (ECG) and the Cocoa Marketing Board (COCOBOD).
He emphasized that the financial troubles of ECG have significantly strained the national budget, with government allocations to address energy sector deficits often surpassing the budgets of critical ministries like Health, Food and Agriculture, and Education.
Prof Bokpin stressed that significant investments are necessary to curb losses across the entire electricity value chain, from generation to distribution. He also cautioned that without clear transparency and public consultation, private-sector participation in ECG could encounter challenges. He questioned the specifics of the proposed private-sector involvement and urged stakeholders to communicate their plans to the Ghanaian public.
Prof Bokpin warned that if the government continues with "business as usual," Ghana may face another intervention from the International Monetary Fund (IMF) or the World Bank. He described such a scenario as inevitable if the government fails to address the inefficiencies and financial challenges plaguing state-owned enterprises.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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