Government reform efforts yet to translate into improved SOEs financial performance – IMF
According to the Fund, the energy and commodity-sector SOEs remain the principal sources of financial strain, with arrears accumulation, liquidity constraints, and non-cost reflective tariffs contributing to ongoing fiscal pressures.
The International Monetary Fund (IMF) has reported that despite decades of government reform efforts, State-Owned Enterprises (SOEs) in Ghana have not experienced improved financial performance. The IMF attributes this lack of progress to persistent structural weaknesses, particularly in the energy and commodity sectors. While SOE revenues have risen substantially from GH¢19 billion in 2015 to GH¢133 billion in 2024, overall performance has remained stagnant.
Profitability is uneven, with a few large SOEs driving the portfolio into net losses that have fluctuated around 1.0% of GDP from 2016 to 2024. The IMF points to financing costs of foreign currency-denominated debts as a contributing factor.
The IMF commends the enhanced financial oversight role and strengthened fiscal risk assessments by the Ministry of Finance (MOF), but notes that challenges remain with the timeliness and completeness of data, as well as the integration of fiscal risks assessment processes. The Ministry of Finance has two fiscal risk reports that sometimes duplicate each other, with the SOE fiscal risk report suffering from significant data lags and a focus that is too narrow, failing to consider macro-critical enterprises.
The IMF also highlights the fragmented fiscal oversight due to split institutional responsibilities between the MOF and the State Interest and Governance Authority (SIGA), leading to overlapping functions and reduced efficiency. The government established SIGA in 2019 as part of a shift toward centralized and professional state ownership, with SIGA working alongside ministries for performance contracts and regular evaluations.
However, the IMF remains concerned about the politicization of Board and CEO appointments, with politicians and high-level officials occupying many board seats, undermining their independence and professionalism. The IMF also raises concerns about the uneven compliance with reporting, audit, and performance contracting requirements, citing significant irregularities in procurement, financial management, and audit follow-up noted by the Auditor General.
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