President John Mahama has declared an aggressive reform agenda targeting struggling state-owned enterprises (SOEs).
He signalled a possible wave of mergers, listings, and shutdowns to end what he calls “economic dead weight.”
In his address to the nation marking his first 120 days in office on Wednesday, May 7, President Mahama said the time for half measures was over and promised a root-and-branch transformation of SOEs to make them efficient and profitable.
“My vision is clear: to transform SOEs into robust pillars of economic strength,” he said, stressing that government-owned entities must contribute value, not losses.
He announced that some SOEs could face closure or be merged, as a comprehensive “deep-dive study” is already underway to investigate the causes of underperformance.
“This may involve shutting down some or merging others,” he said, adding that his government is prepared to take tough but necessary decisions.
The President disclosed that on March 13, he held a high-level meeting with CEOs under the State Interests and Governance Authority (SIGA) to stress the urgency of reform.
[embedded content]“We promised to shake up and realign state-owned enterprises to enhance their profitability and value,” he reminded the nation.
President Mahama said his administration has begun rolling out an enhanced Performance Management System with “clear targets” to closely track financial and operational performance while promoting good governance across the sector.
“We are implementing an enhanced performance management system… and promoting good governance,” he explained.
The President also hinted at bold market-oriented moves, including potential listings on the Ghana Stock Exchange.
“SIGA is facilitating discussions with the Ghana Stock Exchange about potential listings of at least ten SOEs,” he revealed.
He also confirmed talks are ongoing to revive the once-thriving Produce Buying Company.
Mahama stressed that the era of politically shielded inefficiency must end.
“SOEs must prioritise dividend payment as their primary objective this year,” he declared.
The sweeping reforms are part of Mahama’s wider effort to restore fiscal discipline and rebuild public confidence in the management of national assets.
“We are no longer going to tolerate state agencies that exist just to consume,” he said.
President Mahama also used the national address to provide updates on other key initiatives, including ongoing efforts to tackle corruption and sanitise the mining sector.
The shake-up of SOEs, he signalled, was the clearest sign yet that his administration is preparing to make good on its promise of economic realignment.
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