Gov’t to list 10 SOEs on the GSE this year
The Ghana Stock Exchange (GSE) is set to collaborate with the State Interests and Governance Authority (SIGA) to list about 10 State Owned Enterprises (SOEs) on the local exchange this year, according to Abena Amoah, the Managing Director of GSE. This move is aimed at creating additional opportunities for the private sector to buy shares and diversify the activities of the enterprises.
This collaboration is set to be a significant development for the Ghanaian economy as it seeks to leverage the capital market to finance its state-owned enterprises. The listing of SOEs on the stock exchange will not only provide opportunities for private sector investment but also improve the operational efficiency and corporate governance structures of the state-owned companies.
Ms. Amoah was keen to highlight that the finalisation of the paperwork for the listings was complete, with government approval the only remaining obstacle. It is important for the government to provide swift approval, as investors are eagerly anticipating diversification in the Ghanaian capital markets.
Although Ms. Amoah did not disclose the names of the SOEs, she noted that the listing of enterprises on the Stock Exchange is aimed at improving their efficiencies and corporate governance structures. This will, in turn, help companies maximise profits while reducing costs.
This announcement follows on from the Minister for Public Enterprises, Joseph Cudjoe’s recent disclosure that the names of 12 SOEs have been submitted to cabinet for approval for them to be sold to private investors. Some of the SOEs will also be partly sold with others to be listed on the Ghana Stock Exchange. Mr. Cudjoe added that the names of the institutions would be made known after the list receives cabinet approval.
This move towards private sector investment and SOE listings on the stock exchange is an encouraging sign of the government’s commitment to economic growth and development. The strategy of partially selling and listing SOEs to enhance transparency and allow the public to own part of such State-Owned Companies is a welcome development in the Ghanaian economy.
Furthermore, the government’s commitment to running state companies profitably is a much-needed shift in mindset. The need for strategically placed human resources to make state companies viable is an essential component of this shift.
In 2018, the last company that offered an IPO on the Stock Exchange was the telecommunication giant MTN Ghana. The listing of SOEs would provide a significant boost to the local stock market, with investors keen to find new opportunities for diversification.
The listing of SOEs on the Ghana Stock Exchange is a welcome development in the country’s capital market. It offers private sector investors new opportunities for diversification, while also improving the efficiency and governance structures of the state-owned companies. The government’s commitment to running SOEs profitably is an essential step towards building a sustainable and vibrant economy.
