Transparency in financial reporting key to unlocking capital for SOEs

Accra-Ghana, Feb. 15, GNA-Nana Dwemoh Benneh, CEO of the Universal Merchant Bank (UMB), says the adoption of digital payment systems will not only improve revenue collection but also address revenue leakages.
He said this measure would also assure banks and other finance institutions of the viability of their enterprises, on which basis capital structuring could be achieved.
Nana Benneh made this known during an expert panel discussion at the just ended State Interests and Governance Authority (SOEs) Annual Conference in Kwahu-Nkwatia.
The conference has become the annual steering conclave for enterprises in which the government has significant stake and regulatory authorities.
This year’s edition had over 200 participants and had the President, Nana Addo Danquah Akuffo-Addo and other senior government officials in attendance.
He said it was now possible to achieve this visibility via digital payment platforms, adding that the Bank developed a 5th-generation platform marketed as SPEEDPAY, which could be integrated into SOE payment systems.
The CEO said transparency and discipline in reporting standards by SOE’s was key to unlocking private sector capital and funding for these entities as they seek to grow the economy.
Mr. Daniel Addo, CEO of Consolidated Bank Ghana, indicated that transparency was critical, especially in ascertaining cash flows.
He said his Bank had been able to extend a significant credit to SME’s in enclaves like Makola because they were able to embed with these enterprises and had a view of their transactions.
Madam Abena Amoah, the CEO of the Ghana Stock Exchange, said the Exchange remained a viable avenue for SOE’s, as there was a considerable pool of capital locally looking for investment opportunities.
She said this capital could only be unlocked if SOE’s adapted the rigour and best practice of private enterprises in financial reporting and governance.
Mr. Edward Boateng, the CEO of the State Interests and Governance Authority, said the insights gleaned were useful, with the key action point being a push for all SOE’s to adapt digital payment platforms so they could leverage their cash flows.
The panelists were emphatic that though there was an economic crisis, they were bullish about the opportunities for growth in the economy and they were convinced that SOE’s could access the needed capital and funding needed locally, as the international lines were constricted.