A major indicator to the success of profitable State Owned Enterprise (SOEs) regime is the implementation of well-tested corporate governance structures, Business Leader and Brand Expert, Elorm K. Foli has said.

Mr Foli, CEO of E.K Brand Consult, who was speaking as a panel member at the 13th Ghana Economic Forum (GEF) in Accra on August 8, 2024, underscored the importance of SOEs in national development and said, government entities are integral to the collective agenda of economic growth.

The panel, on the sub theme, “The future of State Owned Enterprises: Catalyst for National Development”, congregated various experts from sectors including financial technology, accounting and finance as well as administration and law.

The panel on SOEs, comprised experts from KPMG, AB & David, the banking and fintech sector among others.

Mr Foli, noted corporate governance plays a pivotal role in fostering accountability and long-term success within businesses as it encompasses vital principles such as transparency, ethical conduct, and positive workplace culture, which in the long-term ensures business profitability.

“With corporate governance practice, SOEs will function as well-run businesses rather than perceived as a rewarding position for government appointees on the large scale” he indicated.

Indeed, State-Owned Enterprises recorded a 35 percent reduction in losses from GH¢2.6 billion in 2020 to GH¢1.7 billion in 2021, according to the Ministry of State Enterprises. In 2019, a loss of GH¢5.6 billion was recorded spanning 106 state entities.

However, Mr Foli said the situation can be improved to reduce and end these losses only when the strong will exist to implement corporate governance and accountability measures to ensure profitability.

With the current set up of SOEs, where many are struggling to remain profitable, he proposed a shift in the operations of these entities have to begin considering sustainable ways to remain relevant.

“I am of the opinion that there has to be a shift in operations of SOEs into the future as the government is at a disadvantage when it comes to management of these entities. Government has to probably focus more on financing incubator schemes to give opportunity to young people” he said.

For instance, he suggested government, through privately financed incubator projects, can co-owned and control shares to shore up revenue, instead of solely relying on returns from SOEs.

Albeit, Mr Foli argued that, some SOEs are however doing their best to stay afloat and provide the critical solutions they are setup for.

The 13th Ghana Economic Forum which was held on August 8, 2024, was on the broader theme, “Unlocking Opportunities: Re-Engineering Ghana’s Economic Model for Sustainable Development”.

Elorm K. Foli is a dynamic and innovative leader dedicated to harnessing the power of technology to support small and medium-sized enterprises (SMEs) in Ghana.

With a rich academic background and diverse professional experience, Elorm’s career is marked by a relentless pursuit of sustainable economic development through technological innovation and strategic leadership.

Elorm’s professional expertise covers tech, marketing and advertising. As the Communication Specialist for Nescafe in West Africa, he was exposed to the immense potential of African businesses if given the right support.

Managing advertising and marketing efforts across 22 countries, he ensured that new packaging designs conformed to brand standards, further enhancing the products’ market presence.