SIGA to recommend 10 SOEs for listing

The State Interest and Governance Authority (SIGA) will recommend 10 state-owned enterprises (SOEs) for listing on the Ghana Stock Exchange, as the government looks to attract private capital to improve their operations.

SIGA is exploring various strategies including divestiture and joint ventures to “enhance the efficiency of performing SOEs and revive the struggling ones,” Director-General of SIGA Stephen Asamoah-Boateng said.

Consolidated Bank Ghana, which was formed out of seven dissolved banks in the financial sector crisis, is part of the first batch of SOEs to be recommended for listing, persons familiar with the matter said.

The rest include cement producer Ghacem, Ghana Gas Company, Twifo Oil Palm Plantation, TDC Development Company, and Ghana Rubber Products.

SIGA will submit the proposal to the Ministry of Public Enterprises to be forwarded to Cabinet for approval.

“Indigenous investors interested in ownership of SOEs should make funds available,” Mr. Asamoah-Boateng said.

President Nana Akufo-Addo’s government is targeting to revive viable SOEs whose operations have been hampered by debt, lack of financing, and poor corporate governance practices.

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“We seek to leverage the capital market to improve the productivity of SOEs and create jobs while safeguarding the state’s investment,” Public Enterprises Minister Joseph Cudjoe said.

ECG Privatisation

The minister said privatising Electricity Company of Ghana remains a top priority, as government looks to reduce commercial losses and improve the operations of the national electricity distributor.

“We remain committed to attracting private funds into ECG to enhance its service delivery while making it profitable,” said Mr. Cudjoe.

The government had earlier contracted Power Distribution Services as a concessionaire to run ECG, but the contract was terminated after it discovered the payment guarantees provided by PDS were invalid.