Government Weighs Listing State-Owned Enterprises on Ghana Stock Exchange
The Ghanaian government is exploring the possibility of listing State-Owned Enterprises on the Ghana Stock Exchange to improve their profitability and efficiency. This follows a call from financial officials emphasizing accountability and the need for reform due to significant losses. Minister Elizabeth Ofosu-Adjare supports this initiative as a path to local funding and sustainable investment opportunities.
The Ghanaian government, represented by Trade, Agribusiness, and Industry Minister Elizabeth Ofosu-Adjare, is contemplating the listing of State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE). This step aims to enhance the efficiency and profitability of SOEs, aligning with recent discussions on improving their financial performance.
The proposal comes amid concerns raised by the Managing Director of the Ghana Stock Exchange, who believes that such listings could significantly enhance the financial outcomes of SOEs. Furthermore, during a national economic dialogue, the Finance Minister underscored the critical losses experienced by these enterprises, highlighting the urgent need for substantial reforms to mitigate these issues.
The potential listing of SOEs on the stock exchange is expected to promote greater accountability, attract private sector investments, and contribute to economic stability within Ghana. Minister Ofosu-Adjare expressed confidence in this approach.
She remarked, “I’m sure that government will look at listing SOEs and make sure that we get some of our funding locally. That’s the only way our pension funds will grow for us to get good pension.” This indicates an understanding of the stock market as a viable alternative funding model to reduce reliance on external borrowing and enhance investment opportunities for citizens and pension funds.
If the government proceeds with this initiative, it could lead to a more sustainable and accountable model for managing government-owned enterprises, subsequently improving their competitiveness and financial resilience within the marketplace.
In summary, the Ghanaian government’s consideration of listing State-Owned Enterprises on the Ghana Stock Exchange reflects a strategic effort to enhance their financial performance and operational accountability. By embracing this approach, the government aims to reduce dependence on external funding while fostering a better investment landscape for citizens and pension funds, ultimately contributing to the stability of the local economy.
Original Source: www.ghanaweb.com
