Disposing of SOEs is to acquire private investment, create jobs – Joseph Cudjoe

The Minister of Public Enterprises, Joseph Cudjoe has outlined some of the state-owned enterprises whose assets the government is disposing of. Last week the minister revealed the government’s intention to dispose of the assets of some 17 defunct SOEs.

He however explained that the move is to acquire private investments for the companies and cause a rippling development effect on the areas in which they are situated.

The Minister said in an interview as quoted by citinewsroom.com that the move is “…to make sure we secure our private investments into it through government decision to sell them off into private hand so that they will be invested into to develop them to bring jobs to that area.”

Ten of the SOEs are:

Ghana National Trading Corporation State Construction Corporation

State Fishing Corporation,

UAC Aboso Glass Factory Bungalow of the Bolgatanga Meat Factory

Bonsa Tyre Factory’s Clinic

Research laboratory of the Ghana Consolidated Diamonds

The regional office of the Ghana Food Production Corporation at Srodae

The decision to sell off the assets of these SOEs according to the Minister is a means for the government to save costs.

A study undertaken by the Government and completed in 2019 estimated that the market value of the State’s equity holding in 63 active Specified Entities amounted to GHS 35.7 billion as of December 2016, the Minister stated.

Of the amount, SOEs accounted for 92 percent of the value and the remaining eight percent represented the State’s equity in Joint Venture Companies (JVCs), he added.

The Minister disclosed the government’s intentions to restructure some SOEs through listing them on the Ghana Stock Exchange, liquidation, strategic investment, and outright disposal.

As part of efforts to ensure effective and efficient management of the SOEs, the Minister said, in 2021 it introduced a Public Enterprises League Table (PELT) as a tool for assessing the performances of the Specified Entities and to engender healthy competition amongst them for improved performance.

SSD

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