Nonperforming SOEs will be merged, privatized or shut down-Mahama

President John Dramani Mahama has issued a firm directive to State-Owned Enterprises (SOEs) that continue to operate at a loss, stating that they will be merged, privatized, or shut down as part of efforts to enhance public sector efficiency and ensure economic sustainability.
Addressing Chief Executive Officers (CEOs) of SOEs, President Mahama underscored the urgent need for financial discipline and improved performance among state-run businesses.
He made it clear that the government would no longer tolerate inefficiencies that place an unnecessary strain on the national economy.
“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed. They will be merged, privatized, or shut down,” the president declared.
This policy shift signals the government’s departure from continuous bailouts and subsidies for struggling enterprises. Instead, the focus will be on making SOEs profitable, competitive, and self-sustaining.

SOEs under review

SOEs play a crucial role in Ghana’s economy, operating in key sectors such as energy, transport, agriculture, banking, and manufacturing.
However, persistent inefficiencies and mismanagement have led to financial losses, prompting the government’s renewed commitment to reform.
President Mahama’s directive paves the way for greater accountability and a results-driven approach to managing Ghana’s state enterprises.

Mandatory asset declaration for SOE Executives
The President also instructed the State Interests and Governance Authority (SIGA) to ensure that all CEOs of SOEs comply with the Assets Declaration Law.
He emphasized that the Auditor-General would submit a list of those who had complied by an agreed cut-off date, and those who failed to do so would face sanctions, including possible removal from office.
The Public Office Holders (Declaration of Assets and Disqualification) Act, 1998 (Act 550) mandates public officials to declare their assets and liabilities upon assuming office.
The law is designed to prevent corruption, detect illicit enrichment, and address conflicts of interest.

SIGA to take a stronger oversight role

As part of the reforms, SIGA will transition from a passive observer to an empowered enforcer of national interest.
President Mahama outlined SIGA’s new mandate, which includes, enforcing performance contracts with SOE heads, conducting regular in-depth assessments of SOE finances to ensure transparency, issuing binding directives and implementing compliance mechanisms, intervening directly in underperforming entities, commissioning independent audits to identify inefficiencies and financial leakages, setting and monitoring performance metrics with real consequences for non-performance

Cracking down on corruption and mismanagement
President Mahama reiterated that corruption, procurement fraud, and financial mismanagement within SOEs would be strictly prosecuted.
Boards that endorsed poor decisions would be replaced, and entity resources would no longer be used to indemnify board members from accountability.
“The practice of using entity funds to shield board members from responsibility must cease immediately,” he stated.

Key SOEs to drive economic transformation
SOEs must deliver strategic value in key sectors such as energy, transport, manufacturing, agriculture, and finance to support Ghana’s industrialization and the 24-hour economy initiative. President Mahama directed the following state entities to take the lead in national development.

They include lectricity Company of Ghana (ECG), Ghana Grid Company (GRIDCo), Ghana Water Company, Ghana Cocoa Board, Ghana National Petroleum Corporation (GNPC), MetroMass Transit, Ghana Ports and Harbors Authority, Agricultural Development Bank, National Investment Bank and Telecom SOEs
These institutions will be responsible for ensuring stable electricity and water supply, enhancing production efficiency, improving transportation, and advancing digital banking to support a cashless economy that operates 24/7.

SOEs to support 24-Hour economy initiative
President Mahama emphasized that SOEs must align with his administration’s economic policies, including:
The 24-hour economy policy aimed at stimulating job creation, enhancing industrial productivity, and optimizing national output.
The Accelerated Export Development Council, which has begun promoting exports as part of broader economic reforms.
The Women’s Development Bank, which has received initial seed funding and will soon be operationalized.

Finance ministry to enforce compliance
Finance Minister Dr. Cassiel Ato Baah Forson reaffirmed that under the Public Financial Management (PFM) Act, 2016 (Act 921), SOEs are required to submit audited financial statements within four months after the end of each financial year.
“Moving forward, the Ministry of Finance will work closely with SIGA to ensure strict enforcement of these statutory requirements,” Dr. Forson stated.
Professor Michael Kpessa-Whyte, Director-General of SIGA, assured the public that the authority would enforce the highest standards of governance, transparency, and accountability in SOE operations.
With these reforms, the government is setting a new precedent for public sector efficiency, ensuring that SOEs either contribute to national growth or undergo necessary restructuring.