SOEs must thrive on transparency, accountability to succeed – Foli

Business Leader and Brand Expert Mr. Elorm K. Foli has emphasized that the State-Owned Enterprise (SOE) sector must focus on transparency, accountability, and meritocracy as the primary keys to achieving success and profitability. Speaking as a panel member at the 13th Ghana Economic Forum (GEF) in Accra, he highlighted the critical role of SOEs in national development, noting that government entities are integral to the collective agenda of economic growth.

The future of SOEs: A catalyst for national development

The panel, under the subtheme “The Future of State-Owned Enterprises: Catalyst for National Development,” brought together a wealth of expertise from sectors including financial technology, accounting, finance, administration, and law.

This diverse group instilled confidence in the proposed strategies for SOE reform.

Mr. Foli maintained that SOEs can only generate positive impacts and thrive through accountability and meritocracy as primary implementation strategies.

Given the current state of many SOEs, which are struggling with profitability, Mr. Foli urgently advocates for a shift in their operations, stressing the need for these entities to explore sustainable strategies to maintain their relevance.

A call for strategic shifts and sustainable operations

“I am of the opinion that there has to be a shift in SOE operations into the future, as the government is at a disadvantage when it comes to managing these entities.

The government should probably focus more on financing incubator schemes to give young people opportunities,” he said, urging the audience to consider the future of SOEs.

Mr. Foli suggested that through privately financed incubator projects, the government could co-own and control shares to boost revenue, instead of solely relying on returns from SOEs. He highlighted that SOEs lose more than GH₵1 billion annually due to various infractions, including mismanagement and cronyism. However, he explained that these problems may persist if transparency and accountability are not prioritized in the management of these entities.

Leadership and corporate governance

While acknowledging the challenges, Mr. Foli also mentioned that some SOEs are making efforts to stay afloat and provide the critical solutions they were established for.

The panel on SOEs included experts from KPMG, AB & David, the banking, and fintech sectors, among others, who collectively emphasized the importance of leadership, integrity, and corporate governance as key strategies for ensuring SOEs move in the right direction.

Re-Engineering Ghana’s Economic Model The 13th Ghana Economic Forum, held on August 8, 2024, focused on the broader theme, “Unlocking Opportunities: Re-Engineering Ghana’s Economic Model for Sustainable Development.”