ABSTRACT
The preponderence of state-owned enterprises (SOE) in the Ghanaian economy has its roots in the very strong expansion of the role of the state immediately after achieving political independence. In Ghana, almost all the fully state-owned enterprises were incorporated under the Statutory Corporations’ Act or under a Legislative/ Executive Instrument. Even the Bank of Ghana has investments in several enterprises, three of them wholly-owned. The principal non-financial SOE which holds shares in other enterprises is Ghana Industrial Holding Corporation, which has twenty-four subsidiaries, majority holdings in twenty-two companies, and minority interest in two others. The central government’s commitment to privatisation is rooted in the following statement: Given the generally negative performance of Ghana’s SOEs, a re-examination of the extent of state involvement in enterprises is not only urgent but also unavoidable. The Ghanaian public was not well educated on the privatisation and negotiations for the sale of enterprises were not open.
