Tourism Sector Boom Undermines Justification for SSNIT’s Hotel Divestment, Says Michael Yamson
Michael Harry Yamson, CEO of Ishmael Yamson & Associates, delivered a scathing critique of the Social Security and National Insurance Trust’s (SSNIT) decision to offload its 60% stake in four hotels, citing the institution’s failure to adequately invest in and manage these assets.
In a recent interview, Mr Yamson pointed out the incongruity of selling prime hotel assets at a time when the tourism sector is experiencing a robust recovery post-COVID-19.
“Tourism is one of the fastest sectors to recover after the pandemic,” he noted. “It’s difficult to justify the divestment of four prime hotels when the industry is projected to grow significantly.”
Mr Yamson highlighted the broader implications of this decision, questioning SSNIT’s strategic vision.
“If Ghana is expecting 10 million visitors in the near future, where will they stay? It’s implausible to think that private homes can accommodate such an influx,” he quipped.
Further, he criticised SSNIT’s lack of stakeholder engagement, which he attributes to the ongoing strikes. “There has been inadequate communication with stakeholders, resulting in unrest and numerous unanswered questions,” he asserted.
He underscored the necessity of a long-term strategy for pension sustainability, given the demographic shifts towards a younger population that will eventually retire.
“Today’s youth dividend could become tomorrow’s pension nightmare. We need a 20 to 30-year plan to ensure the pension fund is adequately financed,” he warned.
He called for visionary leadership at SSNIT to instill confidence and ensure the fund’s longevity.
“It’s not about political promises; it’s about ensuring that in ten years, we have the financial means to double pension payouts and keep pace with inflation. That kind of leadership would earn widespread support,” Mr Yamson concluded.
Meanwhile, the Social Security and National Insurance Trust (SSNIT) has announced the termination of its contentious plan to sell a 60% stake in four of its hotels to Rock City Hotel, a private entity owned by Ghana’s Minister of Food and Agriculture, Bryan Acheampong.
The decision came late on Friday, July 12, following significant pushback from stakeholders and a looming industrial action.
In a late-night statement, SSNIT’s Board Chair, Elizabeth Ohene, who had previously defended the deal, confirmed the cessation of the transaction.
“The process has been terminated,” the statement read, reassuring pensioners, contributors, and the general public of the Trust’s dedication to managing its affairs prudently to ensure the sustainability of the pension scheme.
Rock City Hotel echoed this sentiment by withdrawing its bid, citing the overwhelming opposition from stakeholders.
