The International Monetary Fund (IMF) has identified the politicisation of board and chief executive appointments as a major weakness in the governance of Ghana’s state-owned enterprises (SOEs).
In its latest Technical Assistance Report on Ghana’s SOEs in 2024, the IMF said that although Ghana had a framework intended to make appointments more structured and merit-based, appointments remained “highly political and centralised in the Presidency”.
The report said boards of major SOEs were often dominated by political appointees, with board chairs frequently being ministers, Members of Parliament or senior party officials.
The Ghana Ports and Harbours Authority (GPHA) was cited as an example, with the IMF noting that its board was chaired by the national chairman of the governing party. The Volta River Authority (VRA) was also cited for having prominent politicians alongside technocrats and a traditional leader on its board.
According to the IMF, such arrangements differ from OECD standards, which discourage active politicians from serving on SOE boards and promote independent and professional board majorities.
CEO appointments also political
The IMF said chief executive appointments also remained largely political, with boards playing only a limited role.
It noted that CEOs and managing directors were typically appointed by the President, often in consultation with the relevant minister, rather than through competitive processes led by the boards.
The Fund warned that the absence of clear and transparent merit-based procedures could weaken accountability and board effectiveness.
It also noted limited public disclosure of the criteria used to appoint board members and executives, as well as the results of their evaluations.
COCOBOD and financial risks
The IMF also described the Ghana Cocoa Board (COCOBOD) as having a “politicised committee ecosystem”, noting that senior political figures led some key committees.
The report further said a significant portion of irregularities identified by the Auditor-General occurred in SOEs in the energy and roads construction sectors, raising concerns about management practices, political interference and board oversight.
The IMF said aggregate SOE liabilities stood at about GH¢282 billion in 2024, equivalent to roughly 25% of GDP. The ten largest SOEs accounted for about 85% of total liabilities.
IMF calls for merit-based appointments
The Fund said Ghana already had the framework for a more professional appointment system through the State Ownership Policy, which requires the State Interests and Governance Authority (SIGA) to develop a nomination framework for board and CEO appointments.
However, it said the framework remained at an early stage of implementation.
The IMF recommended a transparent and merit-based appointment process, fewer active politicians on SOE boards and greater representation of independent professionals and sector experts.
It also called for structured corporate governance training for board members to strengthen oversight and effectiveness.
