Dr. Cassiel Ato Forson, Ghana’s Finance Minister, has announced significant financial challenges facing state-owned enterprises (SOEs) and joint ventures, urging for urgent reforms. He criticized the reported profits from COCOBOD as misleading, explaining they were artificially inflated due to debt suspension. The National Economic Dialogue is seeking strategies to revitalize the economy and address these critical issues for upcoming budget considerations.
Dr. Cassiel Ato Forson, Ghana’s Finance Minister, expressed deep concerns regarding the financial and operational challenges facing the nation’s state-owned enterprises (SOEs) and joint venture companies. During the National Economic Dialogue on March 3, he highlighted the urgent need for reforms to avert further economic deterioration, noting that many SOEs are currently experiencing severe financial distress.
Dr. Forson elaborated on the precarious state of SOEs, revealing that nearly all are in a negative financial situation. He mentioned entities such as the Electricity Company of Ghana (ECG) and the Agricultural Development Bank (ADB), emphasizing that these institutions are struggling to maintain fiscal stability.
The Finance Minister also scrutinized the reported profits of COCOBOD, which amounted to GH₵2.2 billion in 2023, labeling these figures as misleading. He clarified that this profit was largely artificial, stemming from a debt suspension that alleviated the need for COCOBOD to fulfill its financial obligations.
He stated, “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,” thereby underlining the critical nature of the issue.
The National Economic Dialogue, conducted at the Accra International Conference Centre, convened various stakeholders, including policymakers, economists, business leaders, and civil society representatives. The objective was to develop strategies aimed at revitalizing Ghana’s economy, with high expectations for actionable recommendations to be included in the upcoming National Budget for restructuring the SOEs.
In conclusion, Dr. Ato Forson has underscored the pressing financial difficulties facing Ghana’s state-owned enterprises, calling for immediate reform. He identified many SOEs as financially unsustainable and criticized the misleading profits of COCOBOD as a result of debt suspension. The National Economic Dialogue aims to foster economic revitalization, with hopes for effective solutions to stabilize the economy and restructure struggling enterprises.
Original Source: www.graphic.com.gh
