President John Dramani Mahama has issued a stern admonition to underperforming state-owned enterprises (SOEs), emphasizing that those failing to improve their performance will face drastic measures, including reform, merger, privatization, or closure.
This directive, made clear during a meeting with SOE CEOs organized by the State Interests and Governance Authority (SIGA) on March 13, 2025, underscores Mahama’s commitment to eradicating financial mismanagement and inefficiencies within state enterprises.
Mahama’s declaration that “loss-making SOEs will no longer be tolerated” serves as a clarion call for SOEs to restructure their operations and prioritize profitability.
The President’s warning is bolstered by the 2023 State Ownership Report, which exposed widespread inefficiencies among state entities, with some performing at their worst levels since the inception of Ghana’s Fourth Republic.
To drive economic development, Mahama emphasized that SOEs, such as the Electricity Company of Ghana (ECG), Ghana Grid Company, Ghana Water Company, Ghana Cocoa Board, and the Ghana National Petroleum Corporation, must play a more pivotal role.
“Our SOEs must drive industrialization, create jobs, and expand economic opportunities,” he stated, highlighting the need for these entities to deliver real value in key sectors such as energy, transport, manufacturing, agriculture, and financial
To enhance accountability, Mahama announced sweeping reforms granting SIGA greater powers to enforce performance contracts, conduct financial assessments, issue binding directives, commission independent audits, and impose consequences for poor performance.
This move aims to ensure transparency and financial efficiency within SOEs.
Mahama’s directive that all SOE CEOs submit audited financial statements by April 30 each year or face sanctions, including possible dismissal, serves as a stark reminder of the government’s commitment to eradicating complacency and financial recklessness.
As Mahama aptly stated, “We have made real progress in less than 120 days, but this is just the beginning. Together, we shall reset our economy and build a stronger future for our country”.
