The initiative to list viable but financially struggling State-Owned Enterprises (SoEs) on the Ghana Stock Exchange (GSE) to raise capital is on course, the Managing Director of the Ghana Stock Exchange (GSE), Ms Abena Amoah, has disclosed.
She said a few weeks ago, the management of the GSE paid a courtesy call to the President, John Dramani Mahama, and received his blessings and full support for the initiative.
Ms Amoah was responding to a question posed by The Ghanaian Times in an interview on the programme’s status to list selected SoEs on the Accra bourse during the “Facts Behind the Figures” series featuring Kasapreko PLC in Accra on Wednesday.
“Anything that works well must go through the process. We all know the listing process takes between six months to a year,” she said, adding that the focus was to ensure that when the companies are eventually listed, all business fundamentals have been addressed to guarantee investor confidence.
According to her, the State Interests and Governance Authority (SIGA), which has oversight responsibility for SoEs, was collaborating closely with the GSE to ensure the initiative’s success.
She said SIGA had already demonstrated strong commitment and was fully aligned with the objectives of the listing programme.
Ms Amoah noted that the proposal to list SoEs was one of the major issues discussed during the recent National Economic Dialogue, reflecting the national consensus on the need to reform and revitalise these entities.
“Governance and capital remain the two major challenges facing struggling SoEs,” she pointed out.
The MD explained that transparency was a key listing requirement, especially on the Ghana Alternative Market (GAX), and the GSE was currently reviewing the various SoEs to identify those that were most ready for listing.
Others, she said, would undergo a turnaround process to prepare them adequately for the market.
“We are reviewing the SoEs, determining who comes to market first, and building a pipeline for those that require additional work,” she said.
Ms Amoah explained that the pace of the initiative had slowed recently due to the change in government and the ongoing process of reconstituting the boards and management of several SoEs.
“Many of the SoEs have experienced changes in management as a result of the new administration, and their boards are now being formed,” she said.
“We are updating them on the process, and the President and SIGA have both reaffirmed that we must carry on with the work.”
She reiterated that the initiative remained a priority for the GSE and its partners.
By KINGSLEY ASARE
