Finance Minister, Dr. Cassiel Ato Forson, has raised alarms over the significant operational and financial risks faced by state-owned enterprises (SOEs) and joint venture companies.
Speaking at the National Economic Dialogue on Monday, March 3, Dr. Forson highlighted the dire financial situation of these entities, emphasising the urgent need for restructuring.
“SOEs and joint venture company showing mountain operational and financial risk. Almost all state-owned enterprises are in the red. From ECG to the ADB, almost all of them are in the red,” Dr. Forson stated.
The Finance Minister pointed out that even though COCOBOD reported a profit of GHS2.2 billion in 2023, this profit was artificial. The profit was a result of the debt suspension, which allowed COCOBOD to avoid servicing its debt. Dr. Forson stressed that the underlying debt still exists and must be addressed.
“In fact, beginning from the year 2021, 2022, and 2023, you will see that COCOBOD polled some profit of GHS2.2 billion in the year 2023. This is artificial profit.
“This profit is because they failed to service their debt because of the debt suspension…This debt still exists and so we will need to take action to restructure most of the SOEs,” Dr. Forson explained.
The National Economic Dialogue, held at the Accra International Conference Centre, has brought together policymakers, economists, business leaders, and civil society organizations to discuss key economic strategies. The outcomes of the dialogue are expected to shape policies aimed at addressing Ghana’s economic challenges and driving long-term growth.
As the government prepares to incorporate the dialogue’s outcomes into the forthcoming National Budget, there is growing anticipation that concrete measures will be implemented to address the financial risks faced by state-owned enterprises and ensure the country’s economic stability.
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