The Ghanaian government, represented by Minister Elizabeth Ofosu-Adjare, is considering listing State-Owned Enterprises on the Ghana Stock Exchange to improve efficiency. This follows concerns about financial losses in SOEs and is seen as an opportunity to attract investment while reducing dependence on external funding.
The government of Ghana is contemplating the listing of State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE) to enhance their efficiency and profitability. Elizabeth Ofosu-Adjare, the Minister of Trade, Agribusiness, and Industry, expressed this initiative in response to suggestions from the Managing Director of the GSE, who advocated for such listings to improve financial performance.
During a national economic dialogue, the Finance Minister underscored the significant financial losses experienced by SOEs, emphasizing the necessity for comprehensive reforms. By listing these enterprises on the stock exchange, the government aims to boost accountability, attract private sector investment, and contribute to economic stability.
In her address, Minister Ofosu-Adjare stated that the government is committed to exploring the possibility of listing SOEs to facilitate local funding. She articulated, “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.”
She noted that leveraging the stock market could serve as an alternative funding model, thereby lessening Ghana’s reliance on external borrowing while providing citizens and pension funds with viable investment options. Implementing this initiative could lead to a more sustainable and accountable framework for government-owned enterprises, increasing their competitiveness and financial resilience.
In conclusion, the potential listing of State-Owned Enterprises on the Ghana Stock Exchange is viewed as a strategic initiative to enhance their performance and attract investment. This move, driven by suggestions from key financial leaders and government officials, aims to create a robust framework that supports local funding and strengthens economic stability. The proposal reflects a commitment to improving accountability and competitiveness within the sector.
Original Source: www.ghanaweb.com
