The International Monetary Fund has raised serious concerns about the growing influence of political considerations in the appointment of boards and chief executives at Ghana’s State Owned Enterprises, warning that the practice could weaken corporate governance, dilute accountability and compromise effective oversight.
The concerns are contained in an IMF Technical Assistance Report titled “Advancing SOE Fiscal Risks Management, Financial Oversight, Governance, and Investment Implementation”, which was published in July 2026.
According to the report, Ghana has a legal framework that provides for merit based appointments to the boards of State Owned Enterprises. However, in practice, the selection of directors for some major state entities remains highly centralised, with substantial influence concentrated within the Presidency.
The IMF observed that serving politicians, Cabinet ministers, Members of Parliament and prominent officials of political parties continue to occupy positions on the boards of State Owned Enterprises, including influential leadership positions at some of the country’s major public institutions.
The report specifically pointed to the Ghana Ports and Harbours Authority as an illustration of the concern, noting that its newly inaugurated ten member board is chaired by the national chairman of the governing political party.
The Fund also cited the Volta River Authority, whose board, it said, includes prominent political figures alongside technocrats and a traditional leader.
“In practice, boards of major SOEs are largely dominated by political appointees, with board chairs frequently being ministers, members of parliament, or prominent party officials,” the report stated.
The IMF said the situation represents a significant departure from the governance standards promoted by the Organisation for Economic Co operation and Development, which caution against the participation of active politicians on State Owned Enterprise boards and emphasise the importance of independent and professionally constituted boards.
Beyond the composition of the boards themselves, the Fund expressed concern about the manner in which chief executives are appointed and the implications that this may have for the independence and effectiveness of boards.
It noted that although boards may exercise informal influence over the tenure of chief executives, they are not ultimately responsible for making those appointments.
According to the IMF, this arrangement could weaken the ability of boards to exercise rigorous oversight because directors may become reluctant to challenge management decisions when they do not control the appointment or continuation of the chief executive.
The report further cautioned that such an environment could create incentives for chief executives to become more responsive to political authorities than to the boards formally responsible for supervising their performance.
The IMF’s assessment comes against a backdrop of continuing financial and operational difficulties confronting several State Owned Enterprises, despite recent improvements recorded across parts of the sector.
The State Interests and Governance Authority reported substantial improvement in the aggregate financial performance of specified state entities in its 2025 State Ownership Report, including combined net profits of GH¢19.8 billion among State Owned Enterprises.
The IMF, however, warned that improvements in financial performance must be accompanied by stronger institutional governance if they are to be sustained over the long term.
It identified the absence of sufficiently formalised and transparent procedures for selecting and appointing board members and chief executives as a significant weakness within Ghana’s State Owned Enterprise governance architecture.
The Fund said some appointment processes are still not anchored in clearly defined merit based criteria, competency profiles or standardised vetting procedures, creating greater exposure to political influence and weakening accountability.
It warned that these shortcomings could undermine the effectiveness of boards, blur fiduciary responsibility and ultimately affect the performance of State Owned Enterprises.
The IMF’s findings therefore place renewed emphasis on the need for Ghana to strengthen the institutional framework governing appointments to publicly owned enterprises and ensure that professional competence, independence and clearly defined qualifications play a decisive role in determining who occupies critical positions.
The report suggests that stronger governance would not only improve accountability but could also enhance the capacity of boards to scrutinise management decisions, identify financial risks and hold executives responsible for results.
For Ghana, the issue carries significant fiscal implications because persistent weaknesses within State Owned Enterprises can eventually expose the government and, by extension, taxpayers to substantial financial obligations.
The IMF’s warning consequently adds a new dimension to the ongoing national debate over the management of State Owned Enterprises, particularly the balance between legitimate government ownership and political influence over the institutions entrusted with managing public assets.
As the government continues to pursue improved financial performance across the State Owned Enterprise sector, the report makes clear that profitability alone may not be sufficient. Sustainable improvement, it suggests, will also depend on transparent appointments, professional boards, independent oversight and a governance system capable of placing institutional interests above partisan considerations.
