The International Monetary Fund (IMF) has advised the Ghanaian government to ensure that appointments to the boards of state-owned enterprises (SOEs) are based strictly on merit, as part of broader recommendations to strengthen governance and contain fiscal risks.
In its country report on Ghana, the Fund also called for audited financial statements to be submitted in a timely manner, warning that SOEs remain loss-making in aggregate, with increasing liabilities placing significant pressure on the central government’s finances .
The recommendation comes at a critical moment as Ghana transitions from a three-year, US$3 billion Extended Credit Facility (ECF) programme — which concluded in May 2026 — into a 36-month non-financing Policy Coordination Instrument (PCI) focused on sustaining reform momentum and building resilience .
SOEs a Persistent Fiscal Risk
The IMF noted that strengthening SOE governance and oversight is essential to contain fiscal risks, as contingent liabilities from SOEs have historically been the predominant factor driving Ghana’s debt trajectory . The Fund has consistently identified the energy and cocoa sectors as repeat offenders, with the Electricity Company of Ghana (ECG) and the Ghana Cocoa Board (COCOBOD) absorbing the largest share of state interventions through subsidies, equity injections, and debt absorption .
“A strategic review of the SOE portfolio is necessary to reassess the rationale for state ownership and concentrate oversight on strategically important entities,” the IMF report stated .
The Fund’s mission chief for Ghana, Ruben Atoyan, cautioned that unresolved SOE risks could derail the gains achieved under the ECF programme, noting that tackling these issues would be central to the technical assistance framework replacing the ECF .
Governance Weaknesses at the Core
Banking consultant and corporate governance specialist Dr Richmond Atuahene has previously warned that inefficiencies in Ghana’s SOEs could unwind the fiscal gains from the IMF bailout. He described SOE underperformance as a structural fiscal risk capable of forcing renewed debt accumulation and the materialisation of contingent liabilities on the central government balance sheet .
Governance weaknesses sit at the centre of the problem, including weak boards, limited managerial autonomy, poor disclosure, fragmented oversight across multiple state institutions, and political interference in appointments and procurement .
The IMF’s 2023 conditionality framework for Ghana had already called for the approval of a state ownership policy and guidelines that would establish a framework for the appointment of board members and executive management based on technical capacity and sectoral expertise .
Broader Reforms Needed
Beyond board appointments, the IMF emphasised the need for broader public financial management reforms, including expanding GIFMIS coverage to all central government entities, enforcing competitive procurement practices instead of reliance on single-source tenders, and achieving full visibility over government accounts to operationalise an effective Treasury Single Account .
The Fund also pointed to weaknesses in public investment management, with the 2025 Public Investment Management Assessment (PIMA) identifying persistent shortcomings in project appraisal, underscoring the need to ensure that all capital projects entering the budget comply with legislated appraisal and selection procedures .
SIGA Engages IMF on Reforms
The State Interests and Governance Authority (SIGA), which oversees Ghana’s SOEs, has already begun engagement with the IMF on strengthening oversight. In February 2026, SIGA hosted IMF Resident Representative Dr Adrian Alter for discussions focused on SOE governance, fiscal risk management, and public sector reforms .
SIGA Director-General Professor Michael Kpessa-Whyte noted that the Authority had made progress in improving compliance on submissions by specified entities, strengthening corporate governance frameworks, and reinforcing accountability .
Dr Alter commended SIGA for the progress achieved and noted that collaboration could be further strengthened through targeted capacity building, particularly in investment management, sound investment decision-making, and enhanced performance monitoring of SOEs .
Sobering Context
The IMF’s latest recommendations come against the backdrop of Ghana’s 65-year average annual per capita GDP growth of just 1.15 per cent, a pace the Fund and economists say is insufficient to drive rapid economic transformation. Ghana’s SOE portfolio, which reported total assets of GH¢395.2 billion in 2024, saw liabilities grow faster than assets — climbing 24.2 per cent to GH¢281.9 billion, underscoring the gap between asset growth and operational performance .
