Professor of Economics and immediate past Director of the Institute of Statistical Social and Economic Research, University of Ghana Prof. Peter Quartey, has called for a dual approach to improving the performance of State-Owned Enterprises (SOEs), combining constitutional reforms with stricter performance monitoring.

Speaking on Joy FM’s Super Morning Show on Friday, Prof. Quartey agreed that systemic issues linked to political financing affect how SOEs are managed, but stressed that immediate steps can still be taken to improve outcomes.

“We need constitutional reforms in how we fund the political process,” he said, noting that the current system contributes to inefficiencies in leadership selection and enterprise management.

However, he emphasised that performance management tools such as Key Performance Indicators (KPIs) can help address the problem in the short term.

“In the meantime, if we hold CEOs and management to their KPIs and monitor their performance, it can cure a large part of the problem,” he explained.

Prof. Quartey argued that consistent monitoring and evaluation would help identify underperformance and ensure accountability within SOEs.

“That can address situations where people are not performing or where individuals who may not be competent find themselves in leadership positions,” he said.

He also reiterated concerns about the payment of bonuses by loss-making SOEs, describing such practices as unjustifiable.

“If an institution is not making profits, it should not be paying bonuses. That must be tied strictly to performance,” he noted.

While acknowledging ongoing reform efforts, Prof. Quartey maintained that improving governance structures and enforcing performance standards are critical to ensuring SOEs contribute meaningfully to the economy.

“We must ensure that people are assessed regularly and held accountable. That is how we can improve efficiency and reduce losses,” he added.

He said that while long-term constitutional reforms are necessary, enforcing discipline and performance standards now can significantly improve the fortunes of SOEs.