The International Monetary Fund has identified the politicisation of board and chief executive appointments as a major weakness in the governance of Ghana’s state-owned enterprises
The report indicates that the International Monetary Fund has identified the politicisation of board and chief executive appointments as a major weakness in the governance of Ghana’s state-owned enterprises, warning that the practice is undermining the independence and professionalism of boards.
It further notes that in its latest Technical Assistance Report on Ghana’s state-owned enterprises in 2024, the IMF says that while Ghana has established a framework intended to make appointments more structured and merit-based, “in practice appointments remain highly political and centralised in the Presidency.”
The report says boards of major state-owned enterprises are largely dominated by political appointees, with board chairs frequently being ministers, Members of Parliament or prominent party officials.
The Fund gave a specific example of the Ghana Ports and Harbours Authority (GPHA), where the board was chaired by the national chairman of the governing party — an arrangement that did not change with the change in government in 2025. The Volta River Authority (VRA) was also cited for having prominent politicians on the board alongside technocrats and a traditional leader.
The IMF says such arrangements represent a significant departure from OECD standards, which caution against active politicians serving on SOE boards and emphasise independent and professional majorities.
The IMF’s concern goes beyond the political identity of individual board members. It argues that when boards are not sufficiently independent, their ability to properly oversee management can be weakened.
The report says CEO appointments also remain largely political, with SOE boards playing only a limited role. Chief executives or managing directors are typically appointed by the President, often in consultation with the relevant minister, rather than being selected by the board through a competitive process. According to the IMF, this weakens the accountability link between board oversight and management performance.
The report says the absence of clear, transparent and merit-based procedures for key appointments increases the risk of politicisation, weakens accountability and can undermine board effectiveness and fiduciary responsibility.
It also notes that there is limited public disclosure of the criteria used to select board members and executives and the results of their evaluations.
The IMF identifies political influence in another major state enterprise — the Ghana Cocoa Board (COCOBOD). The report describes COCOBOD as having a “politicised committee ecosystem” and says its Finance Committee was led by senior political figures.
While recognising that the committees focus on important areas, the IMF says the heavy political leadership of key committees limits their independence and could make it more difficult to balance commercial objectives with the organisation’s social responsibilities.
The report therefore presents the issue as broader than individual appointments.
It identifies politicised appointments, insufficient separation between ownership and policy roles, and weak SOE transparency as three systemic weaknesses that continue to constrain progress in Ghana’s state-owned enterprise sector.
The governance concerns are reinforced by the IMF’s observations on financial and procurement irregularities. The report says the biggest portion of irregularities identified by the Auditor General occurred in SOEs within the energy and roads construction sectors.
