The Finance Minister, Dr. Cassiel Ato Forson has raised the alarm over the dire financial state of State-Owned Enterprises (SOEs), warning that they pose significant operational and financial risks to the economy.
Speaking at the National Economic Dialogue on March 3, Dr. Forson stated that almost all SOEs are struggling, citing major institutions such as the Electricity Company of Ghana (ECG) and the Agricultural Development Bank (ADB) as being deeply in the red.
“SOEs and joint venture company showing mountain operational and financial risk. Almost all state-owned enterprises are in the red. From Electricity Company of Ghana to the Agricultural Development Bank, almost all of them are in the red,” he said.
The National Economic Dialogue is aimed to incorporate its outcomes into the National Budget to shape policies aimed to address the country’s economic challenges.
He highlighted the Ghana Cocoa Board (COCOBOD) as an example, revealing that its reported profit of GHS2.2 billion in 2023 was not a true reflection of its financial health. According to Dr. Forson, the profit was “artificial” as a result of the institution’s failure to service its debts due to a government-imposed debt suspension.
“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 due to the debt suspension and all the cocoa bills that were due at the time. They failed to pay. This debt still exists, and so we will need to take action to restructure most of the State-Owned Enterprises,” he emphasized.
