Accra: The government of Ghana is contemplating the listing of selected State-Owned Enterprises (SOEs), including state-owned banks, on the Ghana Stock Exchange (GSE). This strategic initiative is part of a broader effort to enhance corporate governance, efficiency, and profitability within these institutions.
According to Ghana Web, Finance Minister Dr. Cassiel Ato Forson outlined this plan as part of broader reforms aimed at bolstering the performance of public institutions without resorting to complete privatization or closing underperforming entities. Speaking on the Citi Breakfast Show, Dr. Forson emphasized the government's commitment to reviewing the operations of various SOEs to identify measures that would render them more competitive and financially sustainable.
Dr. Forson elaborated that listing selected institutions on the capital market would facilitate greater private sector participation while ensuring the state retains ownership. He dismissed concerns about selling or closing down these entities, clarifying that the focus is on leveraging the stock exchange to enhance governance and profitability.
State-owned banks are among the institutions under consideration for this initiative. Dr. Forson highlighted the government's intention to deepen private sector involvement in some of these financial institutions, citing the Agricultural Development Bank (ADB) as a successful precedent. The ADB is already listed on the GSE, and Dr. Forson expressed the desire to expand this approach by offloading more shares to the private sector.
He further explained that increasing private sector participation through the stock market would enhance transparency, accountability, and corporate governance among state-owned enterprises. The reforms aim to make SOEs more efficient and commercially viable while ensuring they continue to fulfill their strategic roles in the economy.
The proposal is part of a wider government effort to address persistent challenges facing some SOEs, including financial losses, weak governance structures, and reliance on public resources.