Business News Wed, 7 Oct 2015

Ghanaians must own State Enterprises - SEC

The executive chairman of the State Enterprises Commission (SEC), Dr Camynta Baezie, has expressed worry over the takeover of State-Owned Enterprises (SOEs) by expatriate companies.

He observed that the practice if not checked is killing the private sector, disclosing that the privatisation of SOEs should not imply entire takeover by foreign businesses.

To this end, he urged Ghanaians to endeavour to own such businesses when they are listed on the Ghana Stock Exchange (GSE) by government.

According to him, the practice of selling state-owned companies to expatriates is not the solution to the economic challenges of Ghana.

“Ghanaians need to take ownership of such businesses when they are listed on the Ghana Stock Exchange just like GOIL,” Dr Baezie said.

Speaking to Morning Starr on Starr 103.5 FM hosted by Nii Arday Clegg, Dr Baezie observed that most of these expatriate companies depend on the capital market in order to be financially empowered, the reason they are able to easily take over Ghanaian companies.

In his view, nothing stops Ghanaians from going into the capital market to borrow as a means of owning and revamping some ailing state-owned enterprises should they be listed on the GSE.

He proposed that central Government starts initiating SOEs within the long term to create more jobs to cater for the many unemployed youth in the country in order to reduce the unemployment rate in Ghana.

“Ghanaians should begin to develop interest in buying shares in state-owned companies when they are put up for privatisation as such investments develop the economy”.

The practice of foreign takeovers he emphasized come in as a result of the lack of interest by Ghanaians to hold majority shares of their own businesses disclosing that 40% of Ghanaian business are owned by the private sector while 60% are owned by SOEs.

He revealed that the SEC has put in adequate structures for SOEs to function well and reap the benefits thereof.

Source: Starrfmonline.com