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, the IMF said political influence was undermining the independence and professionalism of boards, despite efforts to establish a more structured and merit-based appointment system.
The Fund said, “in practice appointments remain highly political and centralised in the Presidency.”
According to the report, boards of major SOEs are often dominated by political appointees, with ministers, Members of Parliament and senior party officials frequently serving as board chairs or members.
The IMF cited the Ghana Ports and Harbours Authority (GPHA), whose board was chaired by the national chairman of the governing party, an arrangement it said continued despite the change in government in 2025.
The Volta River Authority (VRA) was also cited for having prominent politicians 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 SOE boards and emphasise independent and professional membership.
It warned that politically dominated boards may struggle to oversee management and hold executives accountable effectively.
The IMF also raised concerns about the appointment of chief executives and managing directors, saying boards have limited influence in the process.
Such executives are generally appointed by the President, often in consultation with the relevant minister, instead of being selected through competitive processes led by the boards.
The report said the lack of transparent and merit-based procedures increases the risk of political interference, weakens accountability and undermines board effectiveness.
It further noted limited public disclosure of the criteria used to select board members and executives, as well as the results of their evaluations.
COCOBOD was also identified as having a “politicised committee ecosystem.”
The IMF said the strong political presence on key committees could limit their independence and make it harder to balance commercial objectives with social responsibilities.
The Fund linked the governance challenges to financial and procurement irregularities, particularly in SOEs in the energy and roads construction sectors.
It said ineffective management, political interference and weak board oversight were contributing factors, with potential consequences for public finances.
The IMF noted that 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, with ECG, VRA and COCOBOD among those posing significant fiscal risks.
The Fund therefore urged Ghana to fully implement its existing framework by adopting transparent, merit-based appointments, reducing the number of active politicians on SOE boards and increasing the representation of independent professionals and sector experts.
It also recommended structured training for board members in corporate governance and board effectiveness.
The IMF said Ghana must move beyond having a governance framework on paper and ensure that merit, independence, expertise and performance determine who manages the country’s state-owned enterprises.
