The Ghanaian government is considering listing State-Owned Enterprises on the Ghana Stock Exchange to enhance efficiency and profitability. This initiative has arisen from discussions surrounding the need for financial reforms following losses within SOEs. Minister Elizabeth Ofosu-Adjare supports the move for its potential to provide local funding and improve accountability.
The Ghanaian government is contemplating the listing of State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE) to enhance their efficiency and profitability. This consideration was prompted by suggestions from the Managing Director of the GSE, who proposed that such listings could improve the financial performance of these enterprises.
During a national economic dialogue, Finance Minister highlighted the significant financial losses incurred by SOEs, underscoring the urgent need for structural reforms. Listing these enterprises could promote greater accountability, attract investments from the private sector, and contribute to a stable economic environment.
Minister of Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, remarked at the event, voicing support for the initiative: “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 pointed out that leveraging the stock market could provide Ghana with a vital alternative funding source, decreasing reliance on foreign loans while offering investment opportunities to citizens and pension funds.
Should this proposal be actualized, it is anticipated that the transformation could lead to a more sustainable and accountable business structure for government-owned entities, enhancing their competitiveness and financial stability.
In summary, the Ghanaian government is reviewing the potential of listing State-Owned Enterprises on the Ghana Stock Exchange as a strategic approach to addressing inefficiencies and improving financial performance. This initiative, driven by the need for reform and accountability, aims to create a sustainable funding model that reduces external borrowing and enhances investment opportunities for citizens. The overall goal is to bolster the resilience and competitiveness of SOEs.
Original Source: www.ghanaweb.com
