Accra: The International Monetary Fund (IMF) has commended Ghana's State-Owned Enterprise (SOE) reforms but flagged rising liabilities as a growing fiscal risk. According to Ghana News Agency, the Fund highlighted that SOEs remain critical to infrastructure development, with major infrastructure-related state enterprises recording an investment footprint of about GHS14 billion in 2024.
The IMF's latest assessment, detailed in its "Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation" report, noted that reforms led by the Ministry of Finance (MoF) and the State Interests and Governance Authority (SIGA) have strengthened SOE oversight. The adoption of the State Ownership Policy, Corporate Governance Code, and standardized financial reporting requirements has fortified the governance framework for state enterprises.
The report emphasized that the establishment of SIGA in 2019 marked a pivotal shift towards a centralized and professional state ownership model, enhancing performance monitoring, governance standards, and transparency across the SOE sector. Annual State Ownership Reports and expanded fiscal risk assessments have improved the quality and completeness of financial information available to policymakers.
SOEs remain central to Ghana's economic development, particularly in infrastructure provision, where they play leading roles in electricity generation and distribution, water supply, airport management, port operations, transportation, and telecommunications. The investment footprint of the country's major infrastructure-related SOEs reached approximately GHS14 billion in 2024, equivalent to the total domestically funded component of Ghana's capital investment budget.
The report identified the Electricity Company of Ghana (ECG), Ghana Airports Company Limited (GACL), Ghana Ports and Harbours Authority (GPHA), Volta River Authority (VRA), and Ghana Water Company Limited (GWCL) among the entities undertaking major investments. 'The authorities have established a robust foundation for SOE oversight through the adoption of the SOE Ownership Policy, the Corporate Governance Code, and standardized financial reporting requirements,' the IMF stated in the report.
Despite the progress, the Fund cautioned that rising liabilities among major SOEs and weaknesses in the implementation of governance reforms continued to pose challenges. It identified corporate board appointments, financial sustainability, and fiscal risk management as areas requiring stronger attention. The report said SOE portfolio assets had expanded broadly in line with economic growth, but liabilities had increased more rapidly, reaching about GHS282 billion in 2024.
It stated that ECG, VRA, and the Ghana Cocoa Board (COCOBOD) accounted for a substantial share of the liabilities and therefore remained key areas for fiscal risk monitoring. The IMF noted that Ghana's infrastructure outcomes compared favourably with those of many regional peers, highlighting that access to electricity had risen from below 50 per cent of the population in 2000 to nearly 90 per cent in recent years.
Access to basic drinking water has also steadily improved, while investments in aviation and maritime infrastructure have enhanced airport connectivity and seaport efficiency. To sustain these gains, the Fund recommended stronger oversight of major infrastructure projects undertaken by SOEs, including independent reviews of project costs, timelines, and benefits.
It also encouraged the publication of annual investment plans by major infrastructure enterprises and the integration of infrastructure targets into performance monitoring frameworks administered by SIGA and the Ministry of Finance. The Fund urged the authorities to strengthen medium-term investment planning, improve procurement compliance, and expand transparency to ensure that infrastructure investments supported economic growth without creating excessive fiscal pressures.
Continued reforms and stronger enforcement of governance standards could enhance the contribution of SOEs to economic transformation, infrastructure delivery, and fiscal sustainability, while supporting Ghana's broader development objectives.