President John Dramani Mahama has issued a strong warning to state-owned enterprises (SOEs), stating that those that fail to improve their performance will either be reformed, merged, privatised, or shut down.

Speaking at a meeting with SOE CEOs organised by the State Interests and Governance Authority (SIGA) on March 13, 2025, President Mahama stressed that his government would no longer tolerate financial mismanagement and inefficiencies within state enterprises.

“Loss-making SOEs will no longer be tolerated,” he declared. “They will be swiftly reformed, merged, privatised, or shut down. Corruption, procurement fraud, and financial mismanagement will be prosecuted strictly, and boards that rubber-stamp poor decisions will be replaced.”

The President pointed to the 2023 State Ownership Report, which highlighted widespread inefficiencies among state entities, with some performing at their worst levels since the beginning of Ghana’s Fourth Republic.

He emphasised that SOEs such as the Electricity Company of Ghana (ECG), Ghana Grid Company, Ghana Water Company, Ghana Cocoa Board, and the Ghana National Petroleum Corporation must play a stronger role in driving economic development.

“Our SOEs must drive industrialisation, create jobs, and expand economic opportunities,” he stated. “They must deliver real value, particularly in energy, transport, manufacturing, agriculture, and finance.”

To enhance accountability, Mahama announced reforms granting SIGA greater powers to enforce performance contracts with SOE leadership, conduct financial assessments to ensure transparency, issue binding directives to struggling entities, commission independent audits to track financial efficiency, and impose consequences for poor performance.

He warned against complacency, stating that financial recklessness and poor management would not be excused. He directed all SOE CEOs to submit audited financial statements by April 30 each year or face sanctions, including possible dismissal.

“We have made real progress in less than 120 days, but this is just the beginning,” Mahama asserted. “Together, we shall reset our economy and build a stronger future for our country.”