Gov't to resume privatisation of State Own Enterprises

The government has stated that it will resume the privatisation of public-owned enterprises, which it suspected after taking the reigns of government last year.

The Minister of Finance, Yaw Osafo Maafo, who made the disclosure noted that plans are advanced to sell 25 per cent of Cocoa Processing Company through the Ghana Stock Exchange (GSE). Ghana’s shares in Coca-Cola Ltd., Barclays Bank and 12 other companies listed on the GSE and whose value is easy to assess will also follow.

Mr Osafo Maafo was reacting to an observation made by a reporter at the closing of the 11th Consultative Group meeting in Accra that Government had, so far, been in favour of continuing the privatisation programme. “We are committed and we have assured our development partners that yes there were delays but that did not mean we were not committed.”

From those listed on the Stock Exchange which are easier to privatise, Government will then move to the more difficult ones, he said, indicating that insisting private participation into water and electricity would take some time. “We will do it carefully and transparently to the benefit of all Ghanaians,” he added assuring that the poor handling of the programme that happened in the past would not be repeated.

On whether opting for HIPC has started lowering inflows of capital from Ghana’s partners, the World Bank country director, Peter Harrold said the amount pledged has actually increased because of the debt relief. The total commitments made by Ghana’s partners was $1 billion or some ?716 trillion, $250 million of which was debt relief. The total sum is bigger than $1.5 billion pledged for 1999 and year 2000.

Mr Harrold said this is a clear “demonstration that we are not suffering a reduction in assistance because of HIPC.” Though the second largest provider of debt relief to Ghana, Japan, which had written off $700 million of Ghana’s debts, had declined to give more loans. But she would give grants in aid of schools, health and road projects that Ghana undertakes, Mr Harrold asserted.