Former African Development Bank president Akinwumi Adesina has urged African governments to manage state-owned enterprises as engines of economic growth, value creation, and shared prosperity. He emphasized that ownership is not the destination, but rather value creation is. Adesina made these remarks in a keynote address to a conference of chairpersons and chief executives of publicly supported companies in Tanzania. He stressed that governments must move beyond treating state-owned enterprises as instruments of public ownership.
Adesina proposed that governments could unlock the economic potential of publicly owned companies by strengthening corporate governance, improving operational performance, attracting private investment, and holding management accountable for results. He argued that the success of state-owned enterprises should not be measured simply by the assets governments hold, but by their contribution to economic development, the quality of services they provide, and the value they create for citizens. This approach would enable state-owned enterprises to deliver commercial performance and public value efficiently.
Adesina emphasized the need for clear performance expectations, professional boards, capable executives, and accountability mechanisms that distinguish the roles of government, directors, and management. He stated that the shareholder sets expectations, the Board governs, the CEO leads, management executes, and the Board holds the CEO accountable for results. This framework would ensure that state-owned enterprises operate with a clear understanding of their commercial or public-service mandates.
The former AfDB president warned against allowing public ownership to become an end in itself, arguing that state-owned companies must operate with a clear understanding of their commercial or public-service mandates. He also called for stronger links between public investment and institutional reform, saying capital injections alone would not deliver lasting improvements without accountability and measurable results. Adesina stressed that capital should come with reform and investment should come with accountability.
Adesina described public investment funds as potential instruments for transforming state-owned enterprises, provided their resources were directed towards commercially viable projects and accompanied by stronger governance and performance standards. He urged governments to create conditions that would enable private and institutional investors to participate in state-owned companies. Public listings could help companies access long-term capital, improve transparency, and broaden citizens' participation in national wealth.
Adesina emphasized that improved financial performance must be matched by better public-service delivery, particularly where state-owned enterprises provide essential services. He proposed a Public Service Delivery Index to assess service quality, accessibility, affordability, and reliability, alongside customer satisfaction, waiting times, complaints, and digital access. This approach would place service users at the centre of performance assessment, rather than relying solely on financial statements or internal management reports.
Adesina pointed to experiences in countries including Singapore, Malaysia, Saudi Arabia, and Ethiopia as sources of lessons on improving the performance of state-owned enterprises. He stressed the importance of technology, professional management, and governance systems capable of sustaining institutional reforms. The address was delivered against the backdrop of Tanzania's ambition to build a $1 trillion economy by 2050, and Adesina praised President Samia Suluhu Hassan's focus on reforming state-owned enterprises.
Key points
- Akinwumi Adesina urges African governments to reform state-owned enterprises to drive economic growth and shared prosperity.
- Adesina proposes a Public Service Delivery Index to assess service quality and citizen satisfaction.
- He emphasizes the need for stronger governance, private investment, and accountability in state-owned enterprises.
