The World Bank Country Director, Taliercio O’Brien, has emphasised the critical need to professionalise the governing boards of Ghana’s State-Owned Enterprises (SOEs) to revitalise their operations.   

He highlighted the need to strengthen board autonomy, agility, and expertise as essential driving forces for financial sustainability and operational efficiency within these vital institutions. 

Mr O’Brien made these comments at a High-Level Meeting between President John Dramani Mahama and chief executive officers of State-Owned Enterprises. 

He pointed to the significant challenges facing Ghana’s SOEs, citing examples such as the Electricity Company of Ghana (ECG) and the Cocoa Board (COCOBOD), which are grappling with substantial financial losses and operational inefficiencies. 

Those issues, he stated, underscored the urgent need for a shift towards more robust and independent board structures. 

“The SOE sector performance requires strong measures, such as improving SOE corporate governance, namely strengthening autonomy and agility, and professionalising the composition and operations of the boards of directors,” he said. 

“The World Bank’s perspective is rooted in international best practices. Examples were given of Chile, Uruguay and Namibia. Chile has been a trendsetter in improving public sector governance, particularly in terms of promoting the role and independence of boards of directors.”  

Mr O’Brien noted that Uruguay, for instance, was focused on improving SOE performance using performance contracts. 

Key recommendations for professionalising SOE boards included strengthening autonomy and agility to ensure that boards were empowered to make strategic decisions without undue political interference, enabling them to respond swiftly to market dynamics. 

“Professionalising composition, where boards should comprise individuals with diverse expertise in areas such as finance, management, and industry-specific knowledge, selected based on merit rather than political affiliations,” he said. 

He urged the boards to enhance operational efficiency by establishing clear performance targets, implement robust oversight mechanisms, and promote a culture of accountability. 

“The World Bank is actively supporting Ghana’s efforts to reform its SOE sector,” Mr O’Brien added. 

He said through the $115 million Public Financial Management for Service Delivery Programme, the World Bank would allocate significant resources to strengthen the State Interests and Governance Authority.