President John Mahama has declared an aggressive reform agenda concentrating on struggling state-owned enterprises (SOEs).
He signalled a potential wave of mergers, listings, and shutdowns to finish what he calls “financial lifeless weight.”
In his handle to the nation marking his first 120 days in workplace on Wednesday, Might 7, President Mahama stated the time for half measures was over and promised a root-and-branch transformation of SOEs to make them environment friendly and worthwhile.
“My imaginative and prescient is evident: to remodel SOEs into strong pillars of financial energy,” he stated, stressing that government-owned entities should contribute worth, not losses.
He introduced that some SOEs might face closure or be merged, as a complete “deep-dive research” is already underway to research the causes of underperformance.
“This may occasionally contain shutting down some or merging others,” he stated, including that his authorities is ready to take robust however needed selections.
The President disclosed that on March 13, he held a high-level assembly with CEOs beneath the State Pursuits and Governance Authority (SIGA) to emphasize the urgency of reform.
“We promised to shake up and realign state-owned enterprises to reinforce their profitability and worth,” he reminded the nation.
President Mahama stated his administration has begun rolling out an enhanced Efficiency Administration System with “clear targets” to carefully monitor monetary and operational efficiency whereas selling good governance throughout the sector.
“We’re implementing an enhanced efficiency administration system… and selling good governance,” he defined.
The President additionally hinted at daring market-oriented strikes, together with potential listings on the Ghana Inventory Change.
“SIGA is facilitating discussions with the Ghana Inventory Change about potential listings of not less than ten SOEs,” he revealed.
He additionally confirmed talks are ongoing to revive the once-thriving Produce Shopping for Firm.
Mahama pressured that the period of politically shielded inefficiency should finish.
“SOEs should prioritise dividend cost as their major goal this yr,” he declared.
The sweeping reforms are a part of Mahama’s wider effort to revive fiscal self-discipline and rebuild public confidence within the administration of nationwide property.
“We’re now not going to tolerate state companies that exist simply to eat,” he stated.
President Mahama additionally used the nationwide handle to supply updates on different key initiatives, together with ongoing efforts to sort out corruption and sanitise the mining sector.
The shake-up of SOEs, he signalled, was the clearest signal but that his administration is getting ready to make good on its promise of financial realignment.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially signify the views or coverage of Multimedia Group Restricted.
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