The IMF has raised concerns over political influence in the appointment of boards and CEOs at Ghana’s state-owned enterprises, warning that weak independence and accountability could worsen financial risks in a sector carrying about GH¢282 billion in liabilities.

Ghana’s state-owned enterprises control billions of cedis in public assets, operate some of the country’s most important institutions and carry liabilities of about GH¢282 billion.

But according to the International Monetary Fund, one major problem continues to hold many of them back: politics is still playing too big a role in deciding who runs them.

In its latest Technical Assistance Report on Ghana’s state-owned enterprises in 2024, the IMF says Ghana has introduced policies aimed at making board and chief executive appointments more professional and merit-based.

The problem is that, in practice, appointments remain highly political and heavily centralised around the Presidency.

That, the Fund warns, could weaken the independence of boards, reduce accountability and make it harder for state-owned enterprises to operate efficiently.

Politicians Still Dominate Some SOE Boards

According to the IMF, boards of several major state-owned enterprises continue to include ministers, Members of Parliament and senior political party officials.

The Ghana Ports and Harbours Authority (GPHA) was highlighted as one example. Its board was chaired by the national chairman of the governing political party — an arrangement the IMF noted did not change following the change in government in 2025.

The Volta River Authority (VRA) was also cited for having prominent politicians serving alongside technocrats and a traditional leader.

The IMF believes arrangements like these fall short of international corporate governance standards.

OECD guidelines generally discourage active politicians from serving on SOE boards and instead favour boards with strong professional expertise and greater independence.

The concern is not simply about whether a board member belongs to a political party.

The bigger question is whether that person can independently challenge management, protect the financial interests of the company and make decisions without political pressure.

CEO Appointments Are Another Concern

The IMF also raised concerns about how chief executives and managing directors of state-owned enterprises are appointed.

In many cases, CEOs are appointed by the President, sometimes in consultation with the relevant minister, while the company's board plays only a limited role.

That creates a governance problem.

A board is supposed to supervise management and hold executives accountable for performance. But when the board does not have significant influence over who becomes CEO, that accountability relationship can become weaker.

The IMF therefore wants Ghana to introduce clearer and more competitive procedures for selecting executives based on competence, experience and performance.

It also noted that there is limited public information about the criteria used to choose board members and executives or how their performance is evaluated.

COCOBOD’s Committees Also Come Under Scrutiny

The Ghana Cocoa Board (COCOBOD) was another major institution highlighted in the report.

The IMF described COCOBOD as having a “politicised committee ecosystem,” noting that its Finance Committee was led by senior political figures.

While these committees deal with important issues, the Fund warned that strong political leadership could reduce their independence.

That could become particularly important when COCOBOD has to balance commercial decisions with wider social and political responsibilities.

For the IMF, the problem goes beyond one organisation.

It identified three broader weaknesses affecting Ghana’s state-owned enterprise sector: politicised appointments, weak separation between government ownership and policy functions, and insufficient transparency.

Weak Governance Can Become a Financial Problem

These governance concerns become more serious when the financial position of Ghana’s SOEs is considered.

According to the report, state-owned enterprises had combined liabilities of approximately GH¢282 billion in 2024, equivalent to roughly 25% of Ghana’s GDP.

The ten largest SOEs accounted for about 85% of those liabilities.

Among the institutions carrying significant fiscal risks were ECG, VRA and COCOBOD.

The IMF also noted that a large share of irregularities identified by the Auditor General came from SOEs operating in the energy and roads construction sectors.

These irregularities were linked to issues including poor oversight, ineffective or unethical management practices and political interference.

This is where corporate governance stops being simply an administrative issue.

When a state-owned company struggles financially, accumulates debt or cannot meet its obligations, government may eventually have to intervene.

And when government steps in, the cost can ultimately fall on taxpayers.

IMF Wants Ghana to Change How Appointments Are Made

The IMF says Ghana already has some of the structures needed to improve the situation.

Under the State Ownership Policy, the State Interests and Governance Authority (SIGA) is expected to develop a nomination framework for identifying, vetting and shortlisting candidates for board and CEO positions.

The framework is also expected to establish a pool of qualified directors and clearer procedures for appointments and removals.

However, the IMF says implementation remains at an early stage.

It is recommending that Ghana fully introduce a transparent and genuinely merit-based appointment process.

The Fund also wants the country to gradually reduce the number of active politicians serving on SOE boards and replace them with more independent professionals and sector specialists.

Board members should also receive structured corporate governance training to strengthen their ability to oversee complex institutions.