Improve or face dissolution – Nyarko Ampem to underperforming SOEs

The Deputy Finance Minister, Thomas Nyarko Ampem, has warned loss-making state enterprises to improve performance or risk being shut down.

The remarks were delivered on behalf of Finance Minister Cassiel Ato Forson at a stakeholder meeting involving State-Owned Enterprises (SOEs) and Specified Entities, where the government outlined a stricter approach to accountability and efficiency.

Addressing participants under the theme Leveraging Public Assets For Shared Prosperity, Mr. Ampem made it clear that the era of tolerating persistent losses is over.

He stated that “they are now running out of excuses for non-performance,” pointing to improved macroeconomic conditions as justification for higher expectations.

He referenced commitments by President John Dramani Mahama, noting that under the ongoing economic reset agenda, underperforming SOEs will be “reformed, merged, privatised, or shut down.”

The government, he stressed, is prioritising fiscal discipline, strong governance, and measurable performance outcomes across all public enterprises.

Mr. Ampem highlighted key economic improvements, including a sharp drop in inflation from 23.8 percent in January 2025 to 3.3 percent in February 2026.

He also pointed to increased currency stability and a reduction in the Bank of Ghana’s monetary policy rate as indicators of a stabilising economy. Despite these gains, he insisted SOEs must transition from being fiscal burdens into viable contributors to national revenue.

The Deputy Minister expressed concern over inefficiencies within the sector, citing government expenditure of about $1.47 billion to address energy sector shortfalls.

He singled out the Electricity Company of Ghana, revealing it loses roughly 40 percent of power through technical and commercial challenges.

In the financial sector, he disclosed that the government injected over GH¢1 billion into the National Investment Bank and Agricultural Development Bank in 2025.

He added that moves are underway to convert COCOBOD’s GH¢5.8 billion legacy debt into equity, warning that such interventions pose significant fiscal risks if inefficiencies persist.

Mr. Ampem, however, acknowledged improved performance among some SOEs, commending Ghana Ports and Harbours Authority, Ghana Reinsurance Company Limited, and TDC Ghana Limited for paying a combined GH¢329.34 million in dividends in 2025, up from GH¢28.7 million in 2024.

He cautioned that consistency and compliance remain critical concerns.

He further emphasised strict adherence to governance and reporting standards under the State Interests and Governance Authority, warning that non-compliant entities will face sanctions, with boards and management held accountable for failures.

The meeting, attended by Vice President Jane Naana Opoku-Agyemang and other key officials, focused on repositioning SOEs to drive national development and deliver value to citizens.