State-Owned Enterprises triple GDP contribution in 2022

State-Owned Enterprises (SOEs) in Ghana have shown significant growth, contributing to the nation’s Gross Domestic Product (GDP) in recent years. According to Dr. Mac-Effort Adadey, Director of National Accounts at the Controller and Accountant-General’s Department (CAGD), in 2022, SOEs contributed GHȼ58.2 billion, which represents 10 percent of GDP. This is a substantial increase from 3 percent in 2020 and 6 percent in 2021 when they contributed GHȼ10.33 billion and GHȼ29.11 billion, respectively.

In addition to the increased contribution to GDP, the total assets of SOEs, as reported in the consolidated National Account, have risen significantly. From GH¢51.8 billion in 2020, these assets surged to GH¢419.2 billion in 2022, marking a commendable trend in progress.

Dr. Adadey’s remarks were made during the State Interests and Governance Authority (SIGA) second Editors’ Forum in Accra. The forum aimed to discuss strategies for positioning state enterprises as net contributors to the economy and fostering stronger communication between SIGA and the media.

Furthermore, Dr. Adadey highlighted the ongoing efforts to incorporate all government legacy fixed assets onto the government’s balance sheet. This move is deemed essential for rectifying imbalances in the public financial management landscape. By standardizing a fixed asset register and including the value of assets being used across public entities, the balance sheet will provide a more accurate representation of Ghana’s financial position.

A robust balance sheet has implications for the country’s financial standing and its ability to engage with the global community. It can facilitate favorable loan terms and foster confidence in business dealings with other nations.

Notably, the number of SOEs contributing to the national account has been increasing steadily, with 62 SOEs included in the 2022 accounts. The goal for 2023 is to have 87 SOEs represented in the national account.

Edward Boateng, Director-General of SIGA, emphasized the readiness of his organization and its partners to support the growth of SOEs, helping them become profitable and essential contributors to the nation’s economy. He urged these enterprises to draw insights from their study tour to China, which allowed them to learn from China’s state-owned Assets Supervision and Administration Commission of the State Council (SASAC), known for its successful management of state enterprises.

China has effectively developed its state enterprises to significantly contribute to its economy, and Mr. Boateng expressed confidence that with the right support and compliance, Ghana’s SOEs can likewise enhance their financial prospects.