Economic Analyst Calls for Strict Commercial Discipline in Reviving State-Owned Enterprises
By: Solomon Nartey Tetteh
Economic Analyst Emmanuel Boateng has raised concerns over the persistent losses recorded by Ghana’s state-owned enterprises (SOEs), warning that without strict commercial discipline, efforts to revive them could fail.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Boateng observed that a review of the financial statements of many SOEs paints a worrying picture. “Sometimes you look at the financial statements of our state-owned enterprises. Interestingly, they are all losses. I’m not saying they should be making aggressive profits, but it’s quite concerning,” he stated.
According to him, the consistent trend of losses suggests deep-rooted structural challenges that must be addressed before any meaningful turnaround can occur.
He noted that while the revival of SOEs is possible, it can only succeed under firm commercial principles and a strong governance framework.
“These factories operate under political interference, weak political will, soft budget constraints and overstaffing. These are not new issues, we’ve seen them before,” he said.
Mr. Boateng stressed that excessive political influence in the management of SOEs often undermines efficiency and accountability. He also cited overstaffing and the appointment of individuals without the requisite skills as major factors affecting productivity and financial performance.
Beyond government actions, the analyst pointed to broader societal attitudes that sometimes encourage politicisation of public institutions. He noted that some individuals seek placement in state entities based on political alignment rather than competence, which ultimately weakens institutional performance.
He warned that if not properly managed, state-owned enterprises risk becoming fiscal liabilities that place additional pressure on the national budget.
However, Mr. Boateng acknowledged that globally, several developmental states have successfully leveraged SOEs as strategic tools for economic transformation. He emphasised that Ghana could achieve similar results if political interference is curtailed and strict commercial discipline is enforced.
“The revival can work but only if we are prepared to run these enterprises with professionalism, accountability and a clear commercial focus,” he noted.
