President John Dramani Mahama has stated that the government's plan to list 10 state-owned enterprises (SOEs) on the Ghana Stock Exchange aims to strengthen corporate governance and protect these companies from political interference. According to him, bringing private investors into the ownership structure will change the way these enterprises are governed, making it more challenging for successive governments to arbitrarily remove management teams or dissolve boards. This move is part of efforts to ensure that state-owned companies operate with greater accountability and focus on financial performance.
The President made these remarks at the Council on Foreign Relations in New York, on the sidelines of the United Nations General Assembly. He emphasized that the proposed listings will help address a longstanding concern within the SOE sector, where some enterprises have faced demands for higher salaries and bonuses despite weak financial results. President Mahama stressed that stronger governance structures are needed to align management decisions with the actual performance of the companies. This, he believes, will promote a culture of accountability and transparency within the SOE sector.
The State Interests and Governance Authority's (SIGA) 2025 State Ownership Report provides an overview of the state-owned sector in Ghana, covering 53 SOEs, joint venture companies, and other state entities. The report aims to provide a basis for assessing the financial and operational performance of state interests. According to SIGA, the state-owned sector remains a significant component of Ghana's economy. The report highlights the need for improved governance and accountability within the SOE sector.
President Mahama's comments come on the back of improved performance recorded by the SOE sector. Despite this, the government remains committed to proceeding with the planned listings. He cited two main reasons for this decision: to improve governance and reduce political interference in state-owned enterprises. By listing these companies on the Ghana Stock Exchange, the government aims to make it more difficult for future administrations to interfere with their operations.
The listings will also provide an opportunity for Ghanaians, including members of the diaspora, to acquire shares in state-owned enterprises. This move is expected to broaden public participation in the ownership of state assets. President Mahama believes that this will promote a sense of ownership and accountability among Ghanaians, ultimately contributing to the growth and development of the economy.
The President's announcement is part of a broader effort to transform Ghana's economy. He has also announced plans for a 1,200MW state-owned gas power plant deal by the end of 2026. Additionally, the government is exploring opportunities for broadband expansion, with Amazon expressing interest in investing in Ghana. These initiatives are expected to contribute to Ghana's economic recovery and growth.
The government's commitment to listing SOEs on the Ghana Stock Exchange has been welcomed by various stakeholders. The move is expected to promote transparency, accountability, and good governance within the SOE sector. As the government proceeds with the planned listings, it is expected that the SOE sector will become more efficient and effective in contributing to Ghana's economic growth.
Key points
- The listing of 10 SOEs on the Ghana Stock Exchange aims to strengthen governance and reduce political interference.
- The move is expected to promote accountability, transparency, and good governance within the SOE sector.
- The listings will provide an opportunity for Ghanaians to acquire shares in state-owned enterprises, broadening public participation in the ownership of state assets.
