Ghana's state-owned enterprises will achieve better outcomes through stronger leadership and governance, not merely by changing ownership. This finding is the central argument in a new analysis from Carbonatix, published by JoyNews Online.
The analysis argues that the critical factor for enterprise success lies in competent management, integrity, and disciplined governance. This perspective challenges the long-held belief that privatisation alone provides solutions for inefficient state entities. The document notes that a focus on human behavior and accountability ensures better performance.
This insight is particularly relevant for Ghana, where debates about the future of state-owned enterprises frequently center on privatisation versus public ownership. Many Ghanaian state entities face challenges due to boards lacking independence, politically motivated appointments, and accountability failures. The analysis suggests that institutional reform must begin with an honest assessment of current governance practices.
Carbonatix states, "The evidence shows ownership sets legal responsibility, governance ensures accountability, and human behavior determines performance." They further explain that "changing the owner of a vehicle does not automatically improve the driver's judgement." This metaphor illustrates that ownership is less important than the quality of leadership and operational discipline.
The implications of this analysis are significant for Ghana's policymakers and investors. Future reforms for state-owned enterprises should prioritise strengthening governance structures, enhancing professional management, and ensuring accountability. The focus must shift from who owns the assets to how well those assets are managed and governed.
Global examples support this view. Britain's rail privatisation in the 1990s, for instance, aimed for efficiency but led to coordination issues due to fragmentation. Similarly, England's privately owned water industry faces problems like ageing infrastructure and sewage discharges, showing private ownership alone does not guarantee performance.
Conversely, successful corporatisation models, like Singapore's Temasek Holdings, demonstrate how governments can remain major shareholders while ensuring professional management and global competitiveness. Companies such as Singapore Airlines and DBS Bank thrive under this model due to strong governance and merit-based leadership.
Morocco's OCP Group, a state-owned enterprise, has become a global leader in phosphates and fertilisers through strategic investments in technology and research. China also shows similar successes with corporations like State Grid and COSCO excelling globally through management innovation. These cases highlight that governments can be responsible shareholders without micromanaging daily operations.
The analysis concludes that Africa's debate on state-owned enterprises often oversimplifies a complex reality. The fundamental challenge is building institutions that consistently deliver value, irrespective of their ownership model. Both public and private models have demonstrated successes and failures, with the quality of governance, leadership, and stewardship being the deciding factors in their outcomes.
Decision-makers in Ghana should consider these lessons when addressing the efficiency and profitability of state-owned companies. Improving transparency, strengthening independent boards, and fostering a culture of meritocracy will be crucial next steps.