In 2022, state-owned enterprises (SOEs) significantly contributed to Ghana's Gross Domestic Product (GDP), accounting for GHȼ58.2 billion, which amounts to 10 percent.

This marks a notable increase from their contributions of 3 percent in 2020 and 6 percent in 2021, which equated to GHȼ10.33 billion and GHȼ29.11 billion, respectively, according to Dr. Mac-Effort Adadey, the Director of National Accounts at the Controller and Accountant-General's Department (CAGD).

Furthermore, the total assets of SOEs, as recorded in the consolidated National Account, also saw a substantial rise. It increased from GH¢51.8 billion in 2020 to GH¢419.2 billion in 2022. Dr. Adadey commended the steady progress in this regard.

Dr. Adadey shared this information at the second Editors' Forum organized by the State Interests and Governance Authority (SIGA) in Accra.

The forum aimed to facilitate discussions on positioning state enterprises to become positive contributors to the economy and to enhance communication between SIGA and the media.

He also revealed that there is an ongoing effort to incorporate all government legacy fixed assets into the government's balance sheet.

This move is considered a crucial requirement in the landscape of public financial management and will help rectify imbalances.

“We have set out to bring all government legacy fixed assets back onto government’s balance sheet, because over the years we have been raising money – including debt contracting – to acquire these public assets; but because of the cash-accounting basis of preparing the national accounts, these assets are written-off and not reported on the balance sheet. The effect is that when you look at Ghana’s balance sheet, we have the public debt on it – but the assets which have been acquired with this public debt are not on the public sheet. So, you see a huge negative on the balance sheet,” he said.

The Director went on to say that because the current balance sheet does not accurately depict the state of the assets, all public entities will be required to use a standardized fixed asset register.

This register will account for the assets that are actually being used, enabling the CAGD account directorate to include them in the national account.

“By identifying and collecting data on government assets across public entities – by this I mean ministries, departments and agencies (MDAs) across the country – once we get these assets and have their values on the balance sheet, it will correct the imbalances by showing the true picture of Ghana’s value on the balance sheet.

“For the 2022 annual account, we have been able to bring several assets onto government’s balance sheet; and the expectation is that by end of 2023 we will do more, so the balance sheet will look better than it does now,” he added.

He explained that a good balance sheet will give the country a strong financial standing and allow it to relate to the external world.

“If you want to do business with other people, they will look at your balance sheet and be convinced that your net worth is okay. As a country, a good balance sheet also gives us the opportunity to relate with the external world, contract loans at a cheaper rate, and benefit from other good things a good balance sheet can offer any business or country,” he indicated.

According to him, 19 SOEs joined the national account in 2020; that number rose to 48 in 2021, and it reached 62 in 2022.

“We are targetting 87 SOEs for 2023: the expectation is that in the 2023 annual account, we will have all of them responding and the picture will look better,” he added – encouraging all stakeholders, especially the state enterprises, to comply with the Public Finance Management Acts and Regulations to spur growth.

Director-General of SIGA, Edward Boateng, conveyed his organization's and its partners' commitment to facilitating the growth of state-owned enterprises (SOEs) to ensure their profitability and their role as a cornerstone of the economy.

He encouraged SOEs to draw from the insights gained during their recent study tour to China, organized by SIGA. This tour provided them with direct access to their Chinese counterparts in the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which oversees 98 centrally controlled SOEs. China has effectively developed its state enterprises to make a significant contribution to its economy. Mr. Boateng expressed confidence that, with the necessary support and adherence to compliance, SOEs can substantially enhance their financial prospects.

SASAC in China has established a reputation for operational excellence and strict adherence to statutory regulations and internal controls. Chinese SOEs maintain a well-structured human resources workforce, with high retention rates, competitive remuneration packages, and a strong focus on good governance and achieving high production targets. They are renowned for their unwavering commitment to operational excellence and growth, demonstrating zero tolerance for poor performance.