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Friday, November 22, 2024
BusinessGovt intends to reduce stake in most SOEs - John Boadu

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Govt intends to reduce stake in most SOEs – John Boadu

Director-General of the State Interest and Governance Authority (SIGA), John Boadu, has revealed that the government is working on diversifying its stakes in several state-owned enterprises (SOEs).

Mr. Boadu explained that this move would give Ghanaians the opportunity to invest in these institutions by purchasing shares.

He made this announcement during the fourth annual general meeting of TDC Ghana Limited, stating that… “The government is preparing itself to diverse its interest in most SOEs, 100 percent ownership for what, and the people of this country are also ready to invest in these entities.”

He pointed out that in many developed countries, governments hold minimal shares in their SOE sectors, which helps ensure that qualified individuals are appointed to the board.

He further added: “You are not limited to costs that must be paid by the government, and you must pay those costs that ensure that you are not able to make the required profits.

Discussing TDC’s operations, Mr. Boadu praised the company for its achievements in recent years, emphasizing that it is now time for state-owned limited liability entities to actively compete in their respective markets.

The SIGA Director-General reminded TDC that it has the capacity to borrow with government backing, as long as its financial position is sound.

On the issue of providing affordable housing to Ghanaians, he remarked that for TDC to offer such housing and remain viable, “the government must take the difference so they can survive; that’s how it works elsewhere.”

Mr. Kofi Brako, the Board Chairman of TDC, has called on the government to involve TDC in more affordable housing projects to help address the challenges in the sector and drive its growth.

He highlighted that Ghana’s real estate sector remains one of the fastest-growing industries, with consistent growth over the years, ranging between eight and 10 percent.

This growth, he explained, has been driven by the country’s increasing population and urbanization trends. However, despite these positive developments, Ghana still faces a significant housing deficit, currently estimated at 1.8 million units.

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