'From ECG to ADB, Almost All State-Owned Enterprises Are in the Red' - Ato Forson
Accra, Ghana - 03 March, 2025 - Ghana's state-owned enterprises are on the verge of financial collapse, with nearly all of them deep in the red, threatening to drag the entire economy down with them, Finance Minister Dr. Cassiel Ato Forson warned on Monday.
Speaking at the National Economic Dialogue in Accra on Monday 03 March, Dr. Forson warned that the financial struggles of these enterprises pose a significant risk to Ghana's economic stability.
“SOEs and joint venture company showing mountain operational and financial risk. Almost all state-owned enterprises are in the red. From ECG to the ADB, almost all of them are in the red,” Dr. Forson stated.
The minister's warning comes as Ghana's economy is projected to grow at a slower pace in 2025, with the World Bank forecasting a growth rate of 3.6%. The country's economic challenges have been exacerbated by the financial struggles of its SOEs, which have been plagued by operational and financial risks.
Dr. Forson emphasized the urgent need for restructuring, citing the example of COCOBOD, which reported a profit of GHS2.2 billion in 2023, but only due to a debt suspension that allowed it to avoid servicing its debt. The underlying debt, Dr. Forson stressed, still exists and must be addressed.
“In fact, beginning from the year 2021, 2022, and 2023, you will see that COCOBOD polled some profit of GHS2.2 billion in the year 2023. This is artificial profit.
“This profit is because they failed to service their debt because of the debt suspension…This debt still exists and so we will need to take action to restructure most of the SOEs,” Dr. Forson added.
Source: Lead News Online
