The five companies are VRA, TOR, PMMC, VALCO and COCOBOD.

[contextly_sidebar id=”oE1oJvdCZAqadqt6BOjcKdC0G1Vd33W8″]Although the rest made profits in 2016, seven companies recorded profits between 2014 and 2016.

These were; GPHA, BOST, GACL, GCGL, TDC, Ghana Re and NIB.

The total loss of the five SOEs was 1.79 billion cedis, while the total profits for the remaining 13 was 1 billion cedis. By implication, the 18 SOEs recorded a net loss of 791 million cedis; translating into 44 million cedis net loss each.

Offering strategies to address this problem at an opening ceremony for a two-day policy and governance forum for SOEs in Accra, the Vice President, Dr. Mahamadu Bawumia revealed government’s plan of listing majority of SOEs on the Ghana Stock Exchange (GSE), to promote efficiency and drive economic growth.

The move is expected to solve the financial challenges facing most SOEs in Ghana.

He further indicated that, increased private sector participation in some areas of the economy warranted that government limits its role in such sectors.

“The growth of the private sector makes it increasingly difficult to justify the participation of government in certain sectors of the economy given that most SOEs were initially created to fill gaps in the economy, at a time that there were no private sector players with sufficient leverage to pursue such investments. It is increasingly making less sense for government to keep its interest in SOEs in sectors with strong private sector participation and which continue to make losses,” he stated.

The Vice President added that, “Government on its part will be exploring the possibility of listing as many SOEs as possible where feasible on the Ghana Stock Exchange as part of the overall drive to reform the sector and help them achieve economic success.”

SOEs whittle down drastically

The under-performance, liquidation and winding down of most of the State Owned Enterprises have led to a drastic reduction in their numbers over the last three decades.

From over 300 SOEs in the mid 1980s, Ghana now has just 86 SOEs. This also comprises 46 wholly government owned SOEs, with 40 joint ventures.

A further breakdown also shows that, 37 of the 46 wholly owned are commercial companies. 26 other SOEs are operating as Limited Liability.

There are 9 subvented agencies in addition to 40 other companies in which government has either majority or minority stakes, including 10 mining companies in which government has up to 10 percent carried interest each.

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By: Marian Ansah & Pius Amihere Eduku/citifmonline.com/Ghana

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