Gov't to give up share in Ashanti

According to the BBC, ministers in Ghana are poised to give up control of the country's leading company, Ashanti Goldfields.

Ashanti is that rare creature in African business - a home-grown multinational that is not run from Johannesburg.

It was the first African company to join the New York Stock Exchange in 1994, and the government is under pressure to surrender its "golden share" - which gives ministers a veto on important decisions.

When Ashanti was privatised nine years ago its only asset was Obuasi gold mine, in Ghana.

Today, helped by a broad shareholder base in London and New York, it operates in six African countries.


Ashanti is often held up as an African success story - proof of commitment to building a modern market economy.


Even so, politicians have been keen to have their say in the firm's decisions.


Ghana's government owns a golden share of 20%, inspired by similar arrangements for privatised companies in Britain, France and Germany.


That stake allows ministers to veto any sale of Ashanti's assets, while another law bars foreigners from buying significant stakes without officials' permission.


Ashanti's expansion into other African countries has raised new questions.

In recent years, the firm has worked closely with the continent's biggest gold miner, AngloGold of South Africa.


Both are now keen to merge but the golden share has been a deterrent to the South Africans.


Ministers accept that it is time to amend the current laws, but will not speculate on how they could be changed.


One option is to restrict their influence to decisions which affect business in Ghana but not beyond.


Insiders say a decision could be made within days.