Minister Says SOEs Are Not Attractive To Be Included In The Stock Exchange Now
By Anthony - April 27, 20220
Ghana Stock Exchange
Ghana Stock Exchange
The government is working to transform Public Enterprises (SOEs) before they are listed on the Ghana Stock Exchange (GSE), Mr. Joseph Cudjoe, Minister of Public Enterprises, said.
Responding to suggestions that SOEs should be included in the stock market to promote private sector participation and improve their performance, the Minister said it was a priority for Government to start making corporations profitable to attract investors.
He was speaking to the media about the Department's work in Accra today, Wednesday, April 27, 2022.
“… When I hear some people say you put (SOEs) on the Stock Exchange, they jump at the first question: Have you made them so attractive that if you count on the stock list, the public as investors will buy the shares?
"We have to realize that we have to change the companies that are targeted and when they make a profit and the shares are put on the market, people will invest," said Mr. Cudjoe.
The State Interest and Governance Authority (SIGA) has listed 11 SOEs for inclusion in the GSE list.
Businesses include Ghana Rubber Estates Limited, Twifo Oil Palm Plantation, Ghana National Gas Company Ltd, Consolidated Bank Ghana Limited, Ghana Reinsurance Co. Ltd, and SIC Life.
Other PSC Tema Shipyard, State Housing Company Ltd, TDC Company Limited, GHACEM, and GIHOC Distilleries Ltd.
Mr. Cudjoe said that since 2017, there has been significant progress in the operations of Specified Entities (SEs), including SOEs, Joint Venture Companies (JVCs), and other State-owned organizations (OSEs) operating in various sectors of the economy.
He said in the 2020 financial year, a total of 177 SEs, consisting of 51 SOEs, 44 JVCs, and 82 OSEs recorded a combined GHS130.9 billion and a full GHS12 profit billion, with total assets of GHS417.7 billion.
"According to the 2020 State Ownership Report, the Parties have employed 76,949 people, representing 24.9 percent of the total public sector employment of 309,000," he said.
“There has also been an improvement in Financial Reporting and Compliance. By 2020, 132 entities have submitted their financial reports compared to the 18 in 2016. We will continue to go until we receive a 100 percent updated report for management decisions, ”added Mr. Cudjoe.
He said that although SOEs recorded a combined loss of GHS 2.6 billion in the 2020 financial year, there was a decrease in loss compared to the total loss of GHS 5.16 billion recorded in 2019.
Mr. Cudjoe urged the media to highlight the benefits of other SOEs that work well to eradicate the perception that all SOEs are losing out.
“As we rejoice in the loss and stay focused on that, performance is not a one-off event. Those who do well should be applauded and when they are motivated, those who fall behind should be encouraged, ”he said.
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