By: Kenneth Appiah Bani
The International Monetary Fund (IMF) has raised concerns about the politicisation of board and chief executive appointments within Ghana’s state-owned enterprises, warning that excessive political influence could undermine accountability, transparency and professional oversight.
The concerns were contained in an IMF technical assistance report examining the governance of Ghana’s state-owned enterprises (SOEs).
According to the Fund, although Ghana has established a framework aimed at making appointments more structured and merit-based, the process remains highly political and centralised within the Presidency.
The IMF noted that boards of major state-owned enterprises are often dominated by political appointees, with board chairpersons frequently selected from among ministers, Members of Parliament and senior political party officials.
Concerns over GPHA and VRA
The IMF cited the Ghana Ports and Harbours Authority (GPHA) as an example, noting that its board was chaired by the national chairman of the governing party. According to the report, the arrangement remained unchanged following the change of government in 2025.
The Volta River Authority (VRA) was also cited as having prominent politicians serving on its board alongside technocrats and a traditional leader.
The Fund said such arrangements differ significantly from Organisation for Economic Co-operation and Development (OECD) standards, which discourage active politicians from serving on the boards of state-owned enterprises and instead favour boards with independent and professional majorities.
Political influence in CEO appointments
The IMF also expressed concern about political influence in the appointment of chief executives and managing directors of state-owned enterprises.
The report indicated that chief executives are typically appointed by the President, often in consultation with the relevant sector minister, rather than being selected by boards through competitive and transparent recruitment processes.
According to the Fund, this arrangement could weaken the accountability relationship between boards and management because boards may have limited influence over the appointment, supervision and performance assessment of chief executives.
The IMF further noted that limited public disclosure of the criteria used to select board members and executives, as well as the results of their performance evaluations, could increase the risk of political interference and weaken transparency.
COCOBOD governance concerns
The Ghana Cocoa Board (COCOBOD) also came under scrutiny in the IMF report.
The Fund described COCOBOD’s committee structure as a “politicised committee ecosystem”, raising concerns about the extent of political influence within some of its key committees.
The report noted that COCOBOD’s Finance Committee had been led by senior political figures.
While acknowledging the importance of the committees’ responsibilities, the IMF warned that political leadership of key committees could affect their independence and make it more difficult for the organisation to balance its commercial objectives with broader social responsibilities.
Financial risks facing state-owned enterprises
The governance concerns come at a time when Ghana’s state-owned enterprises are facing significant financial challenges.
The IMF reported that the aggregate liabilities of Ghana’s state-owned enterprises stood at approximately GH¢282 billion in 2024, equivalent to about 25 percent of the country’s Gross Domestic Product (GDP).
The 10 largest state-owned enterprises accounted for approximately 85 percent of total liabilities, with the Electricity Company of Ghana (ECG), VRA and COCOBOD among the entities identified as posing significant fiscal risks.
The Fund warned that state-owned enterprises could expose government finances to substantial risks through direct government support, government-backed borrowing, arrears and quasi-fiscal activities.
It also noted that a significant proportion of irregularities identified by Ghana’s Auditor-General occurred among state-owned enterprises operating in the energy and road construction sectors.
According to the IMF, the cases point to ineffective or unethical management practices, political interference and inadequate oversight by corporate boards.
IMF recommendations
The IMF said Ghana already has a framework intended to improve the professionalism of appointments to state-owned enterprises.
Under the State Ownership Policy, the State Interests and Governance Authority (SIGA) is required to develop a nomination framework for identifying, vetting and shortlisting candidates for board and chief executive positions.
The framework also provides for the creation of a pool of potential directors and procedures for removing board members.
However, the IMF said implementation of the framework remains at an early stage.
The Fund recommended that Ghana operationalise a transparent and genuinely merit-based process for appointing board members and chief executives.
It also called for the progressive reduction of active politicians serving on state-owned enterprise boards, alongside greater reliance on independent professionals and sector experts.
The IMF further recommended structured training for board members to strengthen their understanding of corporate governance and board effectiveness.
The Fund stressed that stronger governance is essential to addressing the financial risks associated with Ghana’s state-owned enterprises, which manage significant public assets and operate across critical sectors including energy, ports, agriculture, finance and infrastructure.
The IMF’s concerns highlight the need for Ghana to strengthen institutional safeguards around appointments and ensure that boards of state-owned enterprises are able to exercise independent and effective oversight in the public interest.
