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The International Monetary Fund (IMF) has advised the government to ensure that the appointments of the boards of state-owned enterprises (SOEs) are merit-based.

 It also wants audited financial statements to be submitted in a timely manner.

In its country report on Ghana, the IMF said strengthening SOE governance and oversight is essential to contain fiscal risks, as SOEs remain loss-making in aggregate, with increasing liabilities putting pressure on the central government.

“A strategic review of the SOE portfolio is necessary to reassess the rationale for state ownership and concentrate oversight on strategically important entities”, it added.

The report added that the weak tax compliance underscores the need to improve revenue administration.

Despite the introduction of digital tools, it warned that compliance gaps remain large, reflecting Ghana Revenue Authority (GRA) structural weaknesses, limited the use of risk-based approaches, and operational inefficiencies, including delays in the not fully digitalized VAT refund process.

“Strengthening PFM systems is also critical to consolidate gains under the ECF, notably by expanding GIFMIS coverage to all central government entities, fully utilising the integrated GIFMIS and GHANEPS platforms, enforcing competitive procurement practices instead of reliance on single-source tenders, and achieving full visibility over government accounts to operationalize an effective TSA.

Finally, as public investment scales up, the IMF pointed out that public investment management needs to be reinforced.

The 2025 PIMA points to persistent weaknesses in project appraisal, underscoring the need to ensure that all capital projects entering the budget comply with legislated appraisal and selection procedures.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.