World Bank Liberia Country Manager, Georgia Wallen, says the World Bank, in collaboration with the Bureau of State Enterprises, has held a one-day workshop in navigating the path to sustainable state-owned enterprises; Cynthia Quinisier reports.
According to Wallen, the SOEs are deeply linked to delivery of Liberia’s core development objectives and the ARREST agenda—from scaling up energy access to boosting sustainable management of forests and expanding access to clean water and digital connectivity.
She said sound economic governance and sustainable practices are fundamental to SOE effectiveness and to the achievement of Liberia’s national development goals.
According to her, state-owned enterprises play a pivotal role in many economies around the globe, serving as engines of growth, providers of essential services and catalysts for development. However, she said their potential can only be fully realized when accompanied by robust governance mechanisms that prioritize transparency, accountability and efficiency.
Speaking during the one-day gathering at the Mamba Point Hotel on May 28, 2024, Wallen said they will discuss insights from the recent report on “Improving Governance of State-Owned Enterprises and Reducing Fiscal Risks.”
She revealed that the report underscores the importance of enhancing governance frameworks within SOEs to mitigate fiscal risks and promote sustainability.
“Among the many insights you’ll take from today’s discussion, I want to highlight four key strategies outlined in the report:
“Transparency should be the cornerstone of SOE operations, ensuring that decision-making processes are clear and accessible to stakeholders.
“Strategic Planning and Performance Management: SOEs should have a clear vision aligned with national development goals. Comprehensive performance management systems are needed to monitor progress; identify areas for improvement; and drive efficiency and innovation.
“Corporate Governance Reforms: Strengthening corporate governance frameworks is essential to instill confidence among investors, creditors, and the public in SOEs. This includes establishing independent boards of directors; adopting best practices in risk management; and fostering a culture of integrity and ethical conduct.
“Financial Sustainability: SOEs need to be financially sustainable to fulfill their mandate effectively without burdening the public purse. This requires prudent financial management practices – including effective budgeting, debt management, and revenue optimization strategies.”
She further said collaboration between governments, international organizations, and the private sector will be paramount as Liberia navigates the path to sustainable SOEs. “Together, we can leverage our collective expertise to implement needed reforms and build a more resilient and prosperous future. I encourage you to participate actively in today’s session and to consider the insights provided by the report and commit ourselves to improving the governance of state-owned enterprises. Doing so can reduce fiscal risks, enhance economic stability, and pave the way for sustainable development and shared prosperity,” she observed.