IMF identifies political appointments as major weakness in GPHA, VRA, COCOBOD and other SOEs

The International Monetary Fund (IMF) has identified the politicization of board and chief executive appointments as a major weakness in Ghana's state-owned enterprises (SOEs), including the Ghana Ports and Harbours Authority (GPHA), the Volta River Authority (VRA), and the Ghana Cocoa Board (COCOBOD). In its latest Technical Assistance Report on Ghana's SOEs in 2024, the IMF warns that this practice undermines the independence and professionalism of SOE boards.

The report highlights that in practice, appointments remain highly political and centralized in the Presidency, with major SOE boards being largely dominated by political appointees, such as ministers, Members of Parliament, or prominent party officials. This departure from OECD standards, which caution against active politicians serving on SOE boards, raises concerns about accountability and professional oversight.

The IMF argues that politicized appointments weaken board effectiveness and fiduciary responsibility, as they limit the ability of boards to properly oversee management and create fiscal risks. The report further identifies politicized committees, insufficient separation between ownership and policy roles, and weak SOE transparency as broader systemic weaknesses that constrain progress in Ghana's SOE sector.

The IMF urges Ghana to adopt a genuinely merit-based and transparent process for appointing boards and CEOs, reducing the number of active politicians on SOE boards, and providing structured training in corporate governance for board members.