SIGA Boss engages World Bank officials on move to make SOEs effective and profitable

Professor Michael Kpessa-Whyte, Acting Director-General of the State Interests and Governance Authority (SIGA) has engaged officials of the World Bank in the move to ensure that State-Owned-Enterprises (SOEs) become effective and profitable.

The engagement was held in Accra on Tuesday, February 25.

Prof Kpessah-Whyte indicated that the move also forms part of the efforts of President John Dramani Mahama to reform Ghana’s SOEs.

In a post on his X page, he said “As part of initial steps towards honouring President Mahama‘s promise to reform Ghana’s SOEs, SIGA met and had fruitful deliberations with the Country Director and other officials of World Bank Ghana on enhancing the efficiency and profitability of SOEs.”

As part of initial steps towards honouring @JDMahama‘s promise to reform Ghana’s SOEs, @sigaghana met and had fruitful deliberations with the Country Director and other officials of #worldbankghana on enhancing the efficiency and profitability of SOEs. pic.twitter.com/3uIxApzeQR

— Michael Kpessa-Whyte (@kpessawhyte) February 25, 2025

Across sectors such as energy, transportation, and utilities, Ghana’s SOEs account for a significant portion of public expenditure and employment. However, their performance has varied:

– Performing Enterprises: A few SOEs like the Ghana National Petroleum Corporation (GNPC) have strategically capitalized on Ghana’s natural resources, contributing to GDP growth and attracting foreign investment. Drawing parallels with successful international models, such as Saudi Aramco’s efficient resource management or Norway’s Statoil, GNPC exemplifies the positive impact of strategic governance and investment in technology.

– Non-Performing Enterprises: Conversely, entities like the Ghana Water Company Limited (GWCL) and Ghana Railways have struggled with inefficiency, inadequate infrastructure, and financial mismanagement. Learning from the UK’s privatization of British Rail or Germany’s Deutsche Bahn restructuring could offer strategic insights into revitalizing these sectors.

Recently, an analyst, Atitso Akpalu highlighted the challenges facing SEOs.

Financial Viability: Many SOEs consistently report losses, primarily due to mismanagement and outdated infrastructure. This not only burdens public finances but also deters private investment.

Governance and Transparency: Limited accountability and transparency have often led to corruption and inefficiencies, contrasting sharply with the robust oversight evident in UK or Canadian SOEs.

Political Interference: Frequent government intervention often compromises operational independence, as seen with public sector appointments based on political affiliation rather than merit.

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