Renowned economist and former Unilever Ghana boss, Dr. Ishmael Yamson, has strongly criticized the state of Ghana’s State-Owned Enterprises (SOEs), arguing that they have been hijacked by political interests rather than fulfilling their original economic purpose.
Speaking on PM Express Business Edition on Joy News last Thursday, Dr. Yamson, who also serves as the Board Chairman of MTN Ghana, lamented the decline of Ghana’s industrial sector since the overthrow of Dr. Kwame Nkrumah.
From Industrial Boom to Collapse
Recalling Ghana’s post-independence era, Dr. Yamson described a time when the country was on the path to economic independence, with industries flourishing, particularly in Tema, where factories operated at full capacity.
“We were very proud to be Ghanaians after independence. In London, every African was assumed to be Ghanaian because of how well the country was doing,” he recounted.
He credited Nkrumah for establishing nearly 400 manufacturing companies, ensuring raw materials were processed locally.
“My first Volkswagen had tires made by the Bonsa Tyre Factory, fed by a rubber plantation. What more could we have asked for at that time?” he recalled.
However, he blamed the collapse of these industries on interventions from Bretton Woods institutions and military rule, which forced the shutdown of many factories.
“They pushed the military government to close down so many industries, and that was the beginning of our downfall,” he stated.
SOEs: A Tool for Politics, Not Progress
Reflecting on his tenure as Chairman of Unilever, Dr. Yamson revealed that over 370 state-owned companies were earmarked for privatization. While he supported the idea of private-sector participation, he criticized its execution, which led to the collapse of most SOEs.
He pointed to a recent Finance Ministry report at the National Economic Dialogue, which disclosed that out of all state-owned enterprises, only two were profitable, while the rest continued to operate at a loss.
“Why? Because SOEs now serve political interests rather than the purpose for which they were created,” he stressed.
Ghana’s IMF Dependence: A Cause for Concern
Dr. Yamson also condemned Ghana’s repeated reliance on the International Monetary Fund (IMF), highlighting that the country has sought IMF bailouts 17 times in 68 years.
“And let us pray we don’t go for an 18th time,” he warned.
Despite the challenges, Dr. Yamson remains optimistic about Ghana’s future, urging policymakers to adopt a reset agenda to restore economic stability.
“The situation is difficult, but not hopeless. If we follow the right policies, we won’t have to go for another bailout,” he concluded.
With Ghana at an economic crossroads, Dr. Yamson’s message is a call to action: State-Owned Enterprises must return to their core purpose—serving national development, not political interests.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
