The Ghanaian government is contemplating the listing of State-Owned Enterprises on the Ghana Stock Exchange to enhance their efficiency and profitability. This follows discussions on the financial losses associated with these enterprises and aims to improve accountability and attract investments. Minister Elizabeth Ofosu-Adjare highlighted the benefits of local funding for pension growth and financial sustainability.
The Government of Ghana, through Trade, Agribusiness, and Industry Minister Elizabeth Ofosu-Adjare, is considering listing State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE). This initiative aims to improve the efficiency and profitability of these enterprises. This proposal aligns with suggestions from the Managing Director of the GSE, who believes that such listings could enhance the financial performance of these entities.
During a national economic dialogue, the Finance Minister drew attention to significant financial losses experienced by SOEs, emphasizing the urgent need for reforms. Listing SOEs could not only enhance their accountability but also attract private sector investments and foster greater economic stability within the country.
Minister Ofosu-Adjare expressed confidence in the proposal, stating, “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 articulated that leveraging the stock market for funding would decrease Ghana’s reliance on external loans and provide citizens and pension funds with alternative investment opportunities.
Should this initiative be implemented, it has the potential to establish a more sustainable and accountable framework for government-owned enterprises, increasing their competitiveness and financial resilience in the marketplace.
In conclusion, the Ghanaian government’s consideration of listing State-Owned Enterprises on the Ghana Stock Exchange represents a strategic move towards enhancing financial performance and accountability. This initiative would provide local funding opportunities, reduce dependence on external borrowing, and offer viable investment options for citizens. If realized, it could foster significant economic stability and resilience among government-owned enterprises.
Original Source: www.ghanaweb.com
