SIGA to Turn Heat on SOEs; Pushes to Enforce Efficiency Through Regular Dividend Payments

Amid the canker of inefficiencies within the country’s State-Owned Enterprises (SOEs) sector, the State Interest and Governance Authority (SIGA) believes that turning up the heat on SOEs to pay regular dividends is one way of driving efficiency.

SIGA says in Ghana’s tight economic climate, where every cedi counts, it cannot sit aloof and watch the state’s investments in millions of cedis in these SOEs go down the drain.

In its latest 2024 State Ownership Report, SIGA stressed that dividend payments must no longer be treated as optional extras but as a hallmark of efficiency.

The authority believes dividends are more than numbers on a balance sheet; they are proof that SOEs are financially healthy, well-managed, and contributing their fair share to the nation’s revenues.

“In the current economic climate, it is crucial for State-Owned Enterprises (SOEs) in particular to prioritize dividend payments as a central objective. Regular dividend distributions not only signal financial health but also reinforce operational efficiency,” the report cited by The High Street Journal noted.

Already, the government budgets are extremely stretched since debt repayments weigh heavily, amid high recurrent expenditures. Citizens are also agitating, demanding better public services. The situation makes reliable dividend flows from SOEs a lifeline, cushioning public finances while signaling that these enterprises are not just consuming resources but creating real value.

SIGA further indicates that SOEs paying dividends aren’t just about filling government coffers. A strong and transparent dividend policy, the authority argues, could make Ghana’s SOEs more attractive to domestic and foreign investors.

Investors trust institutions that show discipline in returning profits and are more inclined to invest in such enterprises.

“Such a practice enhances the financial stability of SOEs, providing a reliable revenue stream that supports government budgets and public services. By establishing a culture of dividend payments, SOEs can foster accountability and encourage better financial management practices, ultimately contributing to long-term sustainability,” it added.

It continued that, “A strong dividend policy can significantly enhance the attractiveness of SOEs to both domestic and foreign investors. Consistent dividend payments build investor confidence and improve the overall market perception of these enterprises.”

SIGA believes Ghanaian SOEs can replicate these successes, moving away from the stereotype of inefficient, politically driven entities toward institutions that operate with corporate discipline.

The push for dividend culture also doubles as a governance reform. With clear policies in place, SOEs would be compelled to adopt greater transparency, accountability, and financial discipline, values that Ghana desperately needs in its public enterprises.

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