Dr. Cassiel Ato Forson, Ghana’s Finance Minister, warned of significant financial difficulties facing state-owned enterprises (SOEs). He noted almost all SOEs are in financial distress, citing misleading profit reports from COCOBOD. The National Economic Dialogue aims to address these issues and formulate strategies for economic revitalization. Immediate action is necessary to restructure SOEs and stabilize the economy.
Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has expressed deep concerns regarding the severe financial and operational difficulties faced by the nation’s state-owned enterprises (SOEs) and joint venture companies. He emphasized that without immediate reforms, these entities risk further exacerbating Ghana’s economic downturn.
During the National Economic Dialogue held on March 3, Dr. Forson highlighted the critical state of SOEs, noting that many are in a precarious financial position. “SOEs and joint venture companies are showing mounting operational and financial risk. Almost all state-owned enterprises are in the red,” he stated.
Moreover, Dr. Forson addressed the seemingly positive financial outcome reported by COCOBOD, which indicated a profit of GH₵2.2 billion in 2023. He condemned this figure as misleading, attributing it to a debt suspension policy that prevented COCOBOD from fulfilling its financial obligations. He remarked, “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.”
The National Economic Dialogue, hosted at the Accra International Conference Centre, convened essential stakeholders, including policymakers, economists, business leaders, and civil society organizations. This collective aimed to devise strategies for revitalizing Ghana’s economy in light of the ongoing challenges faced by SOEs.
As the government prepares to integrate the dialogue’s findings into the forthcoming National Budget, there are heightened expectations for decisive actions to restructure struggling SOEs. Addressing these issues is seen as critical for stabilizing the overall economic landscape of Ghana.
In summary, Dr. Cassiel Ato Forson has raised alarming warnings about the financial instability among Ghana’s state-owned enterprises, underscoring the necessity for immediate reforms. He has identified misleading profit reports, specifically from COCOBOD, as further evidence of the urgent need for structural changes. The ongoing National Economic Dialogue is a pivotal platform for developing strategies to address these critical economic challenges.
Original Source: www.graphic.com.gh
