The Ghanaian government is contemplating listing State-Owned Enterprises on the Ghana Stock Exchange to enhance efficiency and mitigate financial losses. This initiative aims to improve accountability, attract investments, and reduce dependence on external borrowing while providing viable investment options for citizens.
The government of Ghana is considering the listing of State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE) as part of its strategy to enhance efficiency and profitability. Elizabeth Ofosu-Adjare, the Trade, Agribusiness, and Industry Minister, expressed that this move aims to improve the financial performance of these enterprises, responding to recommendations made by the Managing Director of the GSE.
During a national economic dialogue, the Finance Minister addressed significant financial losses currently faced by SOEs, underlining the urgent need for reforms. The proposed listing of SOEs has the potential to increase accountability, attract private sector investments, and foster overall economic stability within the country.
In her address, Minister Ofosu-Adjare stated, “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 highlighted that utilizing the stock market may provide an alternative funding model, reducing Ghana’s reliance on external borrowing while offering citizens viable investment opportunities.
If this initiative is realized, it could usher in a more accountable structure for SOEs, enhancing their competitiveness and financial sustainability, ultimately fostering resilience within Ghana’s economy.
In conclusion, the Ghanaian government is actively considering the listing of State-Owned Enterprises on the Ghana Stock Exchange, which aims to improve their financial efficiency and accountability. This initiative could attract private sector investments and provide citizens with investment opportunities while reducing reliance on external borrowing. If successful, this strategy may lead to more competitive and financially robust government-owned enterprises.
Original Source: www.ghanaweb.com
