The Ghanaian government is contemplating the listing of State-Owned Enterprises on the Ghana Stock Exchange to improve efficiency and attract private investments. Concerns over financial losses within SOEs have prompted calls for reform. This move could lead to better accountability and economic stability, with the Finance Minister stressing the importance of local funding. Minister Ofosu-Adjare envisions using the stock market to support pension funds and reduce external financial dependency.
The Ghanaian government is considering the listing of State-Owned Enterprises (SOEs) on the Ghana Stock Exchange (GSE) to enhance their efficiency and financial viability. This initiative stems from discussions highlighting the financial underperformance of SOEs, with government officials acknowledging a pressing need for reform in this sector. The aim is for the listings to increase transparency and attract private investments, contributing to overall economic stability.
During a national economic dialogue, Finance Minister expressed concerns about significant losses within SOEs, underlining that reforms are essential for improvement. Furthermore, the GSE’s Managing Director advocated for including SOEs in the stock market, arguing it could lead to better financial health for these entities and boost investor confidence.
Minister Elizabeth Ofosu-Adjare remarked that local funding via stock listings is crucial for improving pension fund growth. Utilizing the stock market could lessen the reliance on foreign funding and create legitimate investment avenues for citizens. Successful implementation of this strategy could result in more sustainable and accountable government-owned enterprises that stand a better chance of being successful in the competitive market.
Listing State-Owned Enterprises on the Ghana Stock Exchange is a strategic move aimed at enhancing efficiency, accountability, and profitability. This initiative could attract private investments and reduce external borrowing. By utilizing the stock market, the government seeks to foster economic stability, support local pension funds, and create a resilient financial framework for SOEs.
Original Source: www.ghanaweb.com
