PBC slated for listing on GSE

Accra, (Greater Accra) 25 Jan. '99,

The Produce Buying Company (PBC), a subsidiary of the Ghana Cocobod, has been earmarked for divestiture on the Ghana Stock Exchange (GSE) as part of the government's policy of liberalizing the macro-economic environment with the active participation of the private sector.

Mr Kwame Peprah, Minister of Finance, said this when he opened a two-day stakeholders workshop on the Cocoa Sector Development Strategy in Accra last Friday. The proposed divestiture of the company is part of an overall reform within the cocoa sub-sector, he said. Other companies mentioned for listing on the GSE this year include the State Insurance Company and National Investment Bank

The workshop is being attended by major players in the cocoa industry. It is aimed at collating views on cocoa production, internal and external marketing of cocoa, local processing of beans, taxation and pricing. Cocoa buyers and sellers, and other people in the industry have welcomed the proposal saying it will enhance its overall performance citing the success stories of companies such as the Ashanti Goldfields Company, SSB Bank and the Mechanical Lloyd Company.

Mr Peprah said the reforms embarked upon in the cocoa sub-sector have made a significant impact adding that the number of staff has been cut from 101,000 in 1994 to about 10,500. He said under the reforms, 52 cocoa plantations have so far been divested, the number of extension districts reduced from 99 to 39 and procurement and marketing of cocoa inputs transferred from Cocobod to the Ghana Cocoa and Coffee Farmers Association.

Private buyers have been allowed under the programme to compete with PBC in the internal marketing of cocoa since the 1992/93 season. The proposal for the divestiture of PBC, Tema Oil Refinery, Volta River Authority and other strategic government institutions generated a lot of debate when it was laid before parliament last year. GRi