Cassiel Ato Forson, the Finance Minister has shockingly revealed all State Owned Enterprises are at significant operational and financial risk.
According to Ato Forson, from ECG to the ADB almost all State Owned Enterprises are in red.
He asserted the dire financial situation of these entities and added the need for urgent restructuring.
Speaking at the National Economic Dialogue on Monday, March 3, Dr. Forson detailed, “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,”
“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”, he added.
Ato Forson added, “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”.
The finance minister further revealed that Ghana has saved approximately GH¢1 billion due to the recent reduction in Treasury bill rates.
“The recent reduction in T-Bills alone is saving Ghana about one billion Ghana cedis, and that amount can be channelled into critical areas of the economy.
We need to take steps to reduce borrowing and lower the cost of borrowing so that we can reinvest the savings into national development,” he added.
President John Dramani Mahama has also boldly stated Ghana must step forward, and break free from the limitations of a traditional economy.
According to John Mahama the National Economic Dialogue is to seek solutions that will put us on a path of growth trajectory.
John Mahama noted that they have not gathered at the National Economic Dialogue to recount Ghana’s struggles nor resign themselves to economic stagnation.
President Mahama stated, “It is time for Ghana to also step forward, break free from the limitations of a traditional economy, and embrace a future where opportunity is not confined by time”.
Meanwhile, the National Economic Dialogue is being held at the Accra International Conference Centre.
The National Economic Dialogue has brought together policymakers, economic experts, business leaders, and civil society organizations to talk about key monetary plans.
The results of the dialogue are anticipated to shape policies aimed at addressing Ghana’s economic challenges and driving long-term growth.
