Transparency and discipline in reporting standards by State Owned Enterprises (SOEs) has been prescribed as key to unlocking private sector capital and funding for these entities, as they seek to grow the economy.

The call was made by Nana Dwemoh Benneh, CEO of the Universal Merchant Bank UMB) during an expert panel discussion at the just-ended State Interests and Governance Authority annual conference in Kwahu-Nkwatia.

The conference has become the annual steering conclave for enterprises in which government has significant stake and regulatory authorities. This year’s edition had over 200 participants and had the President, Nana Addo Danquah Akuffo-Addo and other senior government officials in attendance.

Nana Dwemoh spoke on a panel which included Mr. Daniel Addo , CEO of Consolidated Bank Ghana; Hajia Abibata Shanni Mahama Zakariah, CEO of MASLOC; Madam Abena Amoah, CEO of the Ghana Stock Exchange and Mr. Kwame Okyehene-Mensuo , Ministry of Finance. The session was moderated by Ambassador Kabral Blay Amihere.

The panelists were emphatic that though there was an economic crisis, they were bullish about the opportunities for growth in the economy. There were convinced that SOE’s could access the needed capital and funding needed locally, as the international lines were constricted.

Madam Amoah noted that the Ghana Stock Exchange remained a viable avenue for SOE’s, as there were considerable pols of capital locally looking for investment opportunities.

She however noted that this capital can only be unlocked if SOE’s adapted the rigor and best practice of private enterprise in financial reporting and governance. This view was supported by Mr. Daniel Addo, who noted that said transparency was critical especially in ascertaining cash flows. He noted that his Bank had been able to extend a significant credit to SME’s in enclaves like Makola, because they are able to embed with these enterprises and have a view of their transactions.

Nana Dwemoh Benneh followed through on Mr. Addo’s point, noting that it was now possible to achieve this visibility via digital payment platforms. He noted that UMB for instance had developed a 5^th-generation platform marketed as SPEEDPAY, which could be integrated into SOE payment systems.

He noted that adoption of such a system will not only improve revenue collection and address revenue leakages, but will assure banks and other finance houses of the viability of the enterprise, on which basis capital structuring could be achieved.

Both Hajia Zakariah and Mr. Okyehene-Mensuo noted that involving the Ministry of finance early in financial engineering early leads to better and positive outcomes. Hajia Zakariah used the example of MASLOC, which was able to package a successful proposal to unlock a funding line from the African Development Bank, through technical support from the Ministry of Finance.

The CEO of the State Interests and Governance Authority, Mr. Edward Boateng noted that the insights gleaned were useful, with the key action point being a push for all SOE’s to adapt digital payment platforms so they could leverage their cashflows. The conference closed on the 11^th of February, 2023.