IMF Flags Political Appointments at Ghana's State-Owned Enterprises as Major Governance Risk
- The IMF's 2024 Technical Assistance Report identified politicised board and CEO appointments as a core weakness
- Boards of major SOEs including GPHA, VRA, and COCOBOD were found to be dominated by politicians
- Aggregate SOE liabilities reached approximately GH¢282 billion in 2024, equivalent to roughly 25% of Ghana's GDP
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The International Monetary Fund has warned that political interference in board and executive appointments remains one of the most significant governance failures in Ghana's state-owned enterprise sector, with the practice persisting despite the existence of a formal framework designed to curb it.
The assessment appears in the Fund's 2024 Technical Assistance Report on Ghana's state-owned enterprises, which concludes that although a structured, merit-based appointment system has been established in law, "in practice appointments remain highly political and centralised in the Presidency."
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The IMF found that boards of major state enterprises are largely filled with political appointees, with board chairs frequently drawn from the ranks of ministers, Members of Parliament and senior party officials.
The Ghana Ports and Harbours Authority was cited specifically, with its board having been chaired by the national chairman of the governing party, an arrangement that carried over even after the change in government in 2025.
The Volta River Authority was separately identified for placing prominent politicians alongside technocrats and a traditional leader on its board.
The Fund noted that such structures depart substantially from OECD standards, which advise against active politicians serving on SOE boards and call for independent, professionally qualified majorities.
Beyond board composition, the IMF raised concern about how chief executives are selected. Managing directors are typically appointed by the President, often following consultation with the relevant minister, with SOE boards playing only a marginal role in the process.
The IMF said this arrangement weakens the accountability link between board oversight and management performance, particularly when there is limited public disclosure of the criteria used to select or evaluate senior figures.
The Ghana Cocoa Board was also identified as having what the report described as a "politicised committee ecosystem," with its Finance Committee led by senior political figures, raising questions about the organisation's ability to balance commercial objectives with broader social responsibilities.
Fiscal Risks in the SOE Sector
The governance concerns carry direct financial implications. Aggregate SOE liabilities stood at approximately GH¢282 billion in 2024, representing around 25% of GDP. The ten largest state enterprises accounted for roughly 85% of that total, with the Electricity Company of Ghana, VRA and COCOBOD identified among those posing the greatest fiscal risks.
The IMF also noted that the largest share of irregularities flagged by the Auditor General arose in state enterprises operating in the energy and roads construction sectors, which the Fund attributed to ineffective oversight, political interference and poor management practices.
The report acknowledged that Ghana's State Ownership Policy already tasks the State Interests and Governance Authority with developing a nomination framework for vetting and shortlisting candidates for board and CEO positions.
However, the IMF described this framework as still at an early stage of implementation.
The Fund recommended operationalising a transparent, merit-based appointment process, progressively reducing the number of active politicians on SOE boards, and replacing them with independent professionals and sector experts.
It also called for structured training in corporate governance for board members to strengthen oversight capacity.
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Source: YEN.com.gh
