Ghana’s Finance Minister, Dr. Cassiel Ato Forson, warned that state-owned enterprises (SOEs) face serious financial challenges. He stated that almost all SOEs are in the red and criticized COCOBOD’s reported profits as misleading due to debt suspension. The National Economic Dialogue aims to address these issues and include recommendations in the national budget.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has expressed deep concern about the significant financial and operational difficulties faced by state-owned enterprises (SOEs) and joint venture companies in Ghana. He emphasized that urgent reforms are necessary to avert further economic deterioration during a speech at the National Economic Dialogue held on March 3, 2023. Dr. Forson highlighted that nearly all SOEs are currently in financial distress, indicating a critical need for restructuring.
In his address, the Finance Minister specifically mentioned the example of COCOBOD, which reported a profit of GH₵2.2 billion in 2023. He disputed the legitimacy of this figure, arguing it was artificially inflated due to a debt suspension that allowed the organization to bypass servicing its debts. Dr. Forson clarified that while this profit figure appears positive, it conceals ongoing financial obligations that remain unaddressed.
The National Economic Dialogue convened at the Accra International Conference Centre brought together essential stakeholders, including policymakers, economists, business leaders, and civil society representatives. The purpose was to explore strategies for revitalizing the economy. The government intends to incorporate the insights and recommendations from this dialogue into the forthcoming National Budget, signaling a commitment to address the issues affecting struggling SOEs and stabilize the nation’s economy.
The situation of Ghana’s state-owned enterprises is alarming, as highlighted by Finance Minister Dr. Cassiel Ato Forson. With most SOEs operating at a loss and misleading profit reports, such as that of COCOBOD, there is a clear imperative for reform. Moving forward, the National Economic Dialogue aims to address these challenges through strategic recommendations aimed at economic revitalization.
Original Source: www.graphic.com.gh
