Finance Minister, Dr. Cassiel Ato Forson, has raised alarms over the significant operational and financial risks faced by state-owned enterprises (SOEs) and joint venture companies.
Speaking at the National Economic Dialogue on Monday, March 3, Dr. Forson highlighted the dire financial situation of these entities, emphasising the urgent need for restructuring.
“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 Finance Minister pointed out that even though COCOBOD reported a profit of GHS2.2 billion in 2023, this profit was artificial. The profit was a result of the debt suspension, which allowed COCOBOD to avoid servicing its debt. Dr. Forson stressed that the underlying debt 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 explained.
The National Economic Dialogue, held at the Accra International Conference Centre, has brought together policymakers, economists, business leaders, and civil society organizations to discuss key economic strategies. The outcomes of the dialogue are expected to shape policies aimed at addressing Ghana’s economic challenges and driving long-term growth.
As the government prepares to incorporate the dialogue’s outcomes into the forthcoming National Budget, there is growing anticipation that concrete measures will be implemented to address the financial risks faced by state-owned enterprises and ensure the country’s economic stability.
Please read full statement below
SPEECH DELIVERED BY DR. CASSIEL ATO FORSON, MP AND MINISTER RESPONSIBLE FOR FINANCE, AT THE NATIONAL ECONOMIC DIALOGUE HELD ON MONDAY, MARCH 3, 2025 AT THE ACCRA INTERNATIONAL CONFERENCE.
Your Excellency, President John Dramani Mahama,
Dr. Ishmael Yamson, Chairman of the Organising Committee,
and
Other Members of the Organising Committee,
Members of the Diplomatic Corps,
Nananom, Niimei, Naamei and Religious Leaders present,
Fellow countrymen and women,
Distinguished Guests,
Ladies and gentlemen.
1. It gives me great pleasure to welcome you all to this august gathering. Your presence here is aß testament to your love for country and the resilience of our collective unity of purpose.
2. It is ample demonstration of our ability to put aside our differences when the national duty calls, and bind together in search of answers to the problems that confront us.
3. Today’s gathering, and the subsequent consensus that will be forged from the stimulating discussions to follow, lends proof to the good-old saying that “adwen nyi baako fo tiri mu”, to wit knowledge does not reside in the head of one person.
4. I wish to acknowledge the chairman of the Organising Committee, elderly statesman, Dr. Ishmael Yamson and the distinguished members of the committee for working tirelessly to put together this dialogue.
5. It is with great anticipation that we embark on the first National Economic Dialogue in over a decade – a pivotal moment in our nation’s history.
6. This dialogue is not only a significant defining moment, but an important re-enactment of history, when the nation assembled at a similar forum at Senchi some ten years ago.
7. Today, we set out to attempt to resolve economic puzzles of far greater magnitude and scale than those that confronted us some ten years ago.
8. This dialogue is therefore an opportunity to reflect on our economic reality, address pressing challenges, and chart a course towards a more prosperous future for all our citizens.
9. It is my hope and prayer that the lessons that will emerge from these conversations will guide our steps, that we may not repeat the mistakes of recent years.
10. The panel discussions, workshops and breakout sessions have been carefully designed to confront the pressing economic challenges of our time.
11. The resultant prescriptions and critical policy initiatives will drive structural reforms and our transformation agenda to reset our economy and secure prosperity for our citizen.
12. Mr. Chairman, as we embark on the development of our medium-term plans, commencing with the forthcoming budget on March 11, the insights, expertise, and experiences that will be garnered from these deliberations will prove to be invaluable assets that will shape our collective path forward.
13. In this time of crisis, it is imperative that we acknowledge the significant toll borne by every single Ghanaian, old or young.
14. From severe currency depreciation to hyperinflation, from haircuts to steep tax increases, from rising fuel and electricity prices to soaring interest rates.
15. Fellow countrymen and women, the economic crisis is not over. Indeed, the full length of our recent crisis is still unravelling by the day.
16. This situation will require significant sacrifice from all of us to stem the bleeding and place our economy back on the right trajectory.
17. I am pleased to note that His Excellency President John Dramani Mahama has taken the lead and has given the strongest signal of our commitment to sacrifice.
18. In furtherance of this commitment to shared sacrifice, we have streamlined and realigned the size of government, evidenced by the reduction of the number of ministers in his government to sixty (60), from an initial 123 and later 88 ministers.
19. This, we have followed with significant budget cuts for the Office of the President and further prohibition of first-class travel by all government officials.
20. These actions represent merely the initial steps in our ongoing journey towards fiscal discipline and good governance.
21. Mr. Chairman, let me seize this opportunity to express my heartfelt gratitude to Organised Labour and the Ghana Employers Association for their understanding and collaboration in reaching an agreement concerning the minimum wage and base pay.
22. I wish to at this point reaffirm our unwavering commitment to transparency, accountability and good governance.
23. Mr. Chairman, distinguished ladies and gentlemen, I would now crave your indulgence to engage your attention on the State of the Ghanaian Economy.
