Government needs effective structures to generate profit from SOEs

SOEs must generate profit, John Kumah

All businesses cannot be privatized, John Kumah

Privatization of some business may take advantage of the poor

Deputy Minister of Finance John Kumah has stated that government needs effective structures that deliver results for state-owned enterprises.

According to him, the government needs to own part of some businesses to ensure that they are properly managed.

“It’s one very strong policy direction that many people, especially the rightist, always believe that the government has not been and we also have the leftist who will say that government must intervene."

He added, "Sometimes when you allow only commercial rules to prevail you kind of deprive especially the poor of such effective competition then you have the middle ground that says that government should do some business.”

He spoke to the media at IMANI Africa’s economic forum on the theme, “is Ghana’s macro-environment an enabler or hammer to attracting investment”.

According to him, structures should be put in place to enhance efficiency and profitability.

He stated that he belongs to the middle class and believes that government must do some business because not all businesses can be wholly privatized, for example, water, electricity, and social amenities.