Woe unto any Ghanaian Leader who will instigate the transfer of our quantified water supply to the control of few and especially foreign investors. How dare any Ghanaian, elected or non-elected, profess to have the authority to sell one of the necessities of LIFE (Water, Air and Sunshine). STUPID!
BACKGROUND:
Out of the Economic Structural Adjustment Program, (collaboration between the World Bank Group and the Government of Ghana, came the belief that the Ghana National (People) Assets under the ownership and the management of the central government (PUBLIC) had locked up most of Ghana’s capital (worth). If named assets were sold, that is transferred to the people, then the Government of Ghana could free the dead capital trapped within.However, the mistake some shortsighted Public Officials have made, is their inability to differentiate between public and private. The Government of Ghana, which is the PUBLIC, is comprised of all Ghanaians and Ghanaian Entities. The PRIVATE sector is comprised of Ghanaian individuals, (PEOPLE) outside the Institution of Government. Any rights not expressed in the Constitution of Ghana is reserved by the people.
Since the Government of Ghana is the Government of the people, then the people should have the first refusal for purchasing and controlling their own water system. It is ridiculous to suggest that the problem of water supply system is money. Rather it is the lack of understanding as to how to finance Municipalities Capital Improvements.
Now the question is: Can the Ghanaian who consumes the water afford to purchase the water system from the government and maintain the system financially? Yes, of course!! Who has been paying for that all these years? Mismanagement is not equal to poverty!
How would the consumers come up with the money to purchase (or takeover) this precious national natural resource from our Government?
Simple! The same way the water consumers such as those of the United States communities finance their water supply system and pay for the quantity consumed, through the combination of bonds for capital improvements, property tax, and user fees to support and maintain the system. Let us get the money from the market place of capital.
Makola Market Versus Ghana Stock Market
Ghana Stock Exchange is a market place where ownership rights to properties are bought and sold; that is, property is exchanged without having the physical property present. Unlike the Makola Market, which most Ghanaians are familiar with, it is an exchange arena where the actual physical property is bought and sold. The latter inhibits the transient attributes of capital and the size of financial capital. Ghana Stock Exchange needs an infusion of new listing issues (Companies). It seems this generation of Ghanaians is missing a great opportunity to spread the worth of the Nation. I must stress that I do not believe that the lack of creating economic prosperity has been done with any malicious intent on behalf of our past or present Governments.Rather, Ghana’s inability to unleash the huge Dead Capital (to borrow Hernando De Soto’s words) that is locked out of formal economic activities is due, in great part, to an antiquated, non-existing and/or fragmented process of property rights without meaningful enforcements and verifications. "The stock exchange in Ghana relies very heavily on foreign investors and when the economy went into that bad patch, a lot of those foreign investors, portfolio investors disinvested and those who did not disinvest remain inactive," Mr. Tweneboa said.
The above quote is far fetched from the truth and I beg to differ with Mr. Tweneboa. The idea of setting up the Ghana Stock Exchange is imbedded in the Benton Wood Institution’s Economic Structural Adjustment Programs. In order for Ghana Government to divest (PRIVATIZATION) herself from economic productive activities, Ghana Government needs a different kind of Market from Makola type and that market is GSE. If Mr. Tweneboa believes that GSE is to rely very heavily on foreign investors then he has a wrong location for his Market, GSE. There are billions of dollars of Dead Capital untapped in Ghana and it is the job of GSE, in collaboration with Divestiture Implementation Commission (DIC) to tap into this capital.
“GSE’s mission is to provide leadership in the development of the capital market in Ghana and serve as a pivot for capital mobilization. We at the Exchange believe that the satisfactory performance of this leadership role will contribute positively and significantly to the development of the economy of Ghana and the enhancement of the welfare of the people of Ghana. GSE, therefore, continues to position itself to achieve its mission and to enable it serve you better by making significant improvements to the Exchange to provide excellent market environment.”
There is a lack of understanding of the missions of the DIC and the GSE. The logical market place for the DIC to sell the Ghana Government’s assets was, and is, the GSE. Through a series of Initial Public Offerings (IPO) some of the employees could have used portions of their savings and/or pension to acquire ownership (an example of capital development). Another example, the fish wholesalers could have come together to acquire shares of the Tema Cold Storage Corporation. If the DIC had comprehended its mission, there would not have been questionable loan transactions by some of the buyers of Ghana’s assets and then turn around to dismiss the employees and dismantled the factories for profit. Now the challenge to the NPP Government, DIC and GSE is how they go about divesting or privatizing the WATER SYSTEM in Ghana. (Both the NDC’s “Vision 2020” and the NPP are on the record for privatizing water in Ghana. The Government wants to pull her investment capital out of the water system. The market place of capital is a perfect arena for such exercise. GSE should handle the transaction, which should be packaged by the DIC by spreading out the value to all urban real estate property owners who have water meters.
- An example: Let us say there are 400,000 homes in the urban areas of Ghana, and with average value per home of $10,000, which they are all paid for with no lien. This amounts to $4 billion dead capital. Therefore the Government should require each of these homeowners to take 5 percent ($500) each out of their home equity, totaling $200 million to buy out the Government. Through bond financing the communities, like the adopted ones we live in (Overseas), have created (or extract) capital to finance our streets, our schools, buy fire trucks and so on.
This is an example of leadership with vision. Furthermore, duplicate this formula for electricity and the Tema Oil Refinery. This will expand GSE’s employment many folds with good salaries. Let us have creative leadership! It is mind boggling to perceive that in the year 2002, Ghanaian minds cannot comprehend the basic Municipal Financing 101 to come up with extracting capital locally to finance water project; A commodity so essential to life.
WHAT IS THE HIDDEN ADENDA HERE?
The future generation of Ghanaians will never forgive or think kindly of anybody who would have a hand in giving away the control of a key ingredient for human (Ghanaian) survival. For an answer we have to look beyond the quick money the contractors and suppliers will make.Ghana has almost reached the Decision Point of becoming a full-fledged member of HIPC. Ghana opted for joining the defamed group because Ghana reached a point in her economic history where her foreign income almost equals to Ghana’s foreign expenditure. Then, why should any foreign investor be interested in purchasing local assets whose consumers pay only with local currency? Are these new foreign investors going to put constraints on Ghana’s foreign exchange earning when the time comes to transfer their quarterly dividends?
WATER, in a generation or two from now, will be one of the most important commodities in the world! And Lake Volta is one of the largest fresh water bodies in the world and will probably become more important than oil and countries could go to war for. Why then would anybody in his or her right mindset take an awful serious decision for future generations lightly?
PREDICTION:
If the control of water in Ghana slips into the hands of foreign owners, then our fresh water could be shipped out of the country to raise hard currency to pay dividends to foreign shareholders.
Next, Akosombo Hydro electric power will be shut off to become a retainer of fresh water. Expected questions are, How would Ghana get electricity? If the price of water becomes more expensive than gas, then it will make sense to use the supply of Nigeria gas, which will be transported through the Proposed West African Pipeline to generate electricity in Ghana. If you are not a believer, then how is it that a West African Pipeline terminates in Ghana? Who will be the big consumers to make the pipeline project feasible?
My dear countrymen let us not be afraid to plan for Ghana but let us not fail to plan for Ghana!
