'Dead weight no more' - Mahama targets loss-making SOEs for shutdown or merger

President John Mahama has announced a major reform agenda for state-owned enterprises (SOEs).

He aims to address the issues of struggling SOEs through mergers, listings, and shutdowns.

In his address on May 7, he emphasized that half measures are no longer acceptable. He promised a complete transformation of SOEs to improve efficiency and profitability.

“My vision is clear: to transform SOEs into economic pillars,” he stated. He stressed that government entities must add value instead of incurring losses.

Some SOEs may face closure or mergers as part of a comprehensive study. This study will investigate the reasons behind their underperformance.

“This may involve shutting down some or merging others,” he said. The President is ready to make tough decisions if necessary.

On March 13, he held a meeting with CEOs from the State Interests and Governance Authority (SIGA). He highlighted the urgency for reform during this meeting.

“We promised to realign state-owned enterprises for better profitability,” he reminded everyone.

His administration has started implementing an enhanced Performance Management System. This system includes clear targets to monitor financial and operational performance while promoting good governance.

“We are enhancing performance management and promoting good governance,” he explained.

The President also mentioned potential market-oriented moves, including listings on the Ghana Stock Exchange.

“SIGA is discussing potential listings of at least ten SOEs,” he revealed.

Additionally, talks are ongoing to revive the Produce Buying Company, which was once thriving.

Mahama emphasized that inefficiency protected by politics must end. “SOEs must prioritize dividend payments this year,” he declared.

These reforms aim to restore fiscal discipline and rebuild public trust in managing national assets.

“We will not tolerate state agencies that only consume resources,” he said.

In his address, President Mahama also updated the nation on efforts against corruption and improvements in the mining sector.

The planned shake-up of SOEs signals his commitment to economic realignment.