State enterprises increase contribution to GDP
The contribution of state owned enterprises (SOEs’) to gross domestic product (GDP) has increased from GH¢10 billion in 2020 to GH¢58.27 billion in 2022.
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The total assets of SOEs captured in the consolidated National Account also increased from GH¢51.8 billion in 2020 to GH¢ 419.2 billion in 2022.
The Director-General of the State Interests and Governance Authority (SIGA), Edward Boateng, who made this known, said the improvement was due to the increase in the number of entities complying with financial reporting requirements, among other efforts by SIGA, to make SOEs profitable.
Mr Boateng was speaking at an editors’ forum in Accra last Tuesday. The forum was aimed at strengthening the communication between SIGA and the media.
Performance
He emphasised the importance of the media in nation-building and its role as vital players in spreading information and educating the public about the activities of SIGA and the specified entities under its purview.
“SIGA has been leading a number of activities since the inaugural forum in January. We want to share them with you today and rely on your generosity to spread the news,” he said.
Key among the activities, he said, was the supervision of the preparation of the State Ownership Report for 2021 and 2022, and the organisation of the second edition of the Public Enterprises League Table (PELT) Awards.
Beyond these activities, the SIGA boss said a study tour to China with some SOEs was facilitated by SIGA few weeks ago to give them first hand access to their counterparts in China.
He explained that China was one of the few countries that had successfully developed its state enterprises to contribute significantly to its economy.
“Specified Entities also have their success stories to tell, despite their challenges, and we would appreciate your ongoing collaboration in this area,” Mr Boateng added.
He said SIGA would continue to work with stakeholders to help improve the fortunes of SOEs and position them as the bedrock of the country’s economic recovery.
Contribution
The Head of National Accounts at the Controller and Accountant-General’s Department, Mac-Effort Adadey, who delivered an insightful presentation on the impact of SOEs on Ghana’s GDP, highlighted some of the successes SIGA had accomplished since its establishment in terms of compliance and the SOEs’ influence on the country’s economic output.
He said the partnerships between SIGA and other supervisory organisations, such as the Auditor General, Internal Audit Agency, and the Controller and Accountant General, among others, had significantly contributed to the improvement of SOEs over the last two years, despite the present economic challenges.
For instance, he said the consolidated National Account has increased from 19 in 2020 to 62 in 2022, helping to increase SOEs’ contribution to GDP within the period.