Banking consultant Dr. Richmond Atuahene has called for transferring management of non-strategic state-owned enterprises (SOEs) to the private sector. This includes entities like GIHOC Distilleries Company Limited and State Transport. These SOEs place an unnecessary strain on Ghana's public finances.
Dr. Atuahene raised concerns about the financial burden of some SOEs. This comes as the government transitions from the International Monetary Fund’s (IMF) Extended Credit Facility to a new Policy Coordination Instrument (PCI) framework. The PCI is a non-financing framework, meaning it does not provide direct financial disbursements to Ghana.
This transition follows Ghana's successful completion of its previous IMF-supported programme. The government intends to use the PCI for technical assistance and policy coordination. This framework also aims to support investor confidence without direct financial aid. Strengthening macroeconomic management under the PCI is expected to help Ghana achieve investment-grade credit ratings.
Officials believe attaining investment-grade status could significantly reduce borrowing costs. This would benefit both the government and the private sector. It would also attract long-term investment and boost foreign direct investment (FDI). Furthermore, it would improve access to affordable financing for infrastructure and private sector growth.
Speaking on Channel One TV on Monday, May 18, 2026, Dr. Atuahene questioned the state's continued involvement in certain enterprises. He specifically mentioned GIHOC and State Transport. He asked: “GIHOC, state transport and others should all be in the private sector. Why do we spend money on them?” His statement highlighted the perceived inefficiency of state-run operations compared to private sector alternatives.
Dr. Atuahene argued that private sector operators often deliver services more efficiently. He cited private transport companies like OA and VIP as examples of profitable private entities. In contrast, he noted the lack of online booking for State Transport. He stated: “If OA and VIP are making good money, then you hear that State Transport, you cannot even book online. What a hell.”
His recommendation is to privatise these SOEs to enhance efficiency. This would reduce the burden on public sector debt. He added: “Let’s get rid of some of the SOEs and make them efficient so that we don’t have to come and sit down and talk about public sector debt.” Ghana's public debt has been a significant concern, reaching GHS 610 billion by December 2023. Restructuring SOEs could ease this pressure.
The push for privatization aligns with broader economic reforms Ghana is undertaking. These reforms aim to stabilise public finances and stimulate economic growth. The successful implementation of the PCI will depend on Ghana's commitment to these fiscal disciplines. Such measures could improve investor perception and Ghana’s creditworthiness on international markets. This would be a crucial step towards long-term fiscal sustainability and economic prosperity.