SIGA targets 25% contribution to GDP by SOEs in 2023

The State Interests and Governance Authority (SIGA) forecasts that State-Owned Enterprises (SOEs) will make up 25% of the country’s Gross Domestic Product (GDP) by 2023. The Ministry of Finance has tasked SIGA with making sure that the SOEs are economically viable and contribute at least 30% to the GDP.

According to Ambassador Edward Boateng, the Director-General of SIGA, the SOEs contributed 21% to the GDP last year, but they aim to increase that number. They have plans to reach about 25% this year. SIGA, established under the SIGA Act, 2019, is responsible for overseeing and administering the state’s interests in SOEs, Joint Venture Companies (JVCs), and other state entities. It is mandated to promote efficient and profitable operations of specified entities, as well as enforce good corporate governance practices. Currently, SIGA supervises 175 state enterprises.

According to the 2020 State Ownership Report, SOEs paid GHS275.48m as dividends to the Government, out of a projected GHS290m. Mr. Boateng stated that one of their main goals is to make the SOEs economically viable and attractive. He mentioned that the latest audited accounts showed a reduction in SOE losses from GHS5.16 to GHS2.4 billion. He expressed confidence that these entities will post profits as they comply with SIGA’s directives.

Dr. Boateng also discussed the proposed listing of SOEs on the stock exchange, stating that SIGA is collaborating with the Ghana Stock Exchange to identify capable state enterprises. They have set up a committee of stakeholders to explore opportunities and ensure that this move benefits the state. Additionally, SIGA aims to recapitalize some industries to improve functionality and profitability.

Ambassador Boateng emphasized that the SIGA Act provides an opportunity to revive and transform the SOEs sector, facilitating the growth of the private sector and creating employment opportunities for the youth. To address challenges in the SOEs sector and focus on sustainable improvements in performance, SIGA plans to hold its Stakeholder Conference in Kwahu, Eastern Region, this year.