Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has raised alarms about the financial difficulties of state-owned enterprises (SOEs) and joint ventures, stating most are currently in the red. He criticized COCOBOD’s reported profit as misleading, attributing it to a debt suspension. The National Economic Dialogue aims to devise strategies to revitalize these struggling entities and stabilize the economy as the government prepares to integrate these ideas into the National Budget.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has expressed serious concerns regarding the financial and operational crises faced by state-owned enterprises (SOEs) and joint venture companies in Ghana. During the National Economic Dialogue on March 3, he emphasized the urgent need for reforms to avert further economic decline, noting that many SOEs are currently in financial trouble.
The Minister illustrated the precarious situation of SOEs by stating that nearly all are experiencing significant financial losses. He cited examples like the Electricity Company of Ghana (ECG) and the Agricultural Development Bank (ADB), both of which are reportedly operating at a loss. According to him, these enterprises exhibit escalating operational and financial risks.
Furthermore, Dr. Forson commented on the Ghana Cocoa Board’s (COCOBOD) reported profit of GH₵2.2 billion for 2023, labeling it as misleading and artificial. He clarified that this profit figure is primarily due to a debt suspension that allowed COCOBOD to evade its financial obligations, indicating that the debt remains unresolved.
Dr. Forson 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.” The National Economic Dialogue, which brought together critical stakeholders including policymakers and economists, aims to generate actionable strategies for revitalizing the economy.
The government anticipates incorporating the recommendations from this dialogue into the forthcoming National Budget. There is a collective hope that the proposed measures will effectively address the challenges faced by distressed SOEs and contribute to stabilizing Ghana’s economy.
In conclusion, Dr. Cassiel Ato Forson’s warnings regarding the financial turmoil of state-owned enterprises highlight the urgent need for structural reforms in Ghana. The misleading profit reported by COCOBOD underscores the complexities facing these entities. The National Economic Dialogue aims to facilitate discussions that can lead to essential changes, with the government expected to implement these recommendations in the upcoming budget, fostering a path towards economic stabilization.
Original Source: www.graphic.com.gh
