Investors to quit Ghana

(The Ghanaian Voice) -- A year after operating in a climate of relative uncertainty, Malaysian Companies, which invested in several businesses in Ghana in the late 90s are about to pull out of the country citing official hostility as the number one reason. “Voice” investigations have gathered that one major investor Malyasian Telecom, with 30 per cent stake in Ghana Telecom is about to pack off.

The participation of Malaysian Telecom in the divestiture of Ghana Telecom has been a subject of public controversy. Since the NPP Government assumed office on January 7, 2001, pressure has mounted on the Malaysians to quit Ghana Telecom. Sources close to the Ministry of Communications and Technology have confirmed that the process to terminate the Management Services Agreement between Ghana Telecom and Malaysia Telecom is almost completed.

Last year, the Minister for Transport and Communication Hon. Owusu Agyepong hinted at a press conference that the government would not renew the agreement. There are speculations that the NPP is wooing investors from Spain, US, South Africa and Morocco to replace. Telecom Malaysia, incidentally, has a sizeable stake in South Africa telecom industry.

The Chief Executive Officer of Ghana Telecom, a Malaysian, is winding up and is expected to leave the county by May this year together with other Malaysian employees. GAMA, another controversial joint venture between the Ghana government and Malaysian investors will follow suit.

The Ghanaian Voice can confirm that the Malaysians are definitely pulling out of both GAMA and TV3. A source close to the company told the paper last week that the foreign company, which owns 70 per cent shares in GAMA has written to the Government as the Minority shareholder offering it the first right of refusal.

In business, this is interpreted as a declaration of intention by a partner to sell off all or some of its stake in a business. Similarly, lawyers of the Ghanaian partner in TV3 have been notified by the foreign shareholder of the their intention to sell off their stake and pull out by June 2002. The TV station has been mired in controversy over alleged links with the former NDC Government.

The business community is awash with speculations that the Malaysians are also reconsidering their participation in the Tema Shipyard and Dry Dock joint venture. It is, however, not known if the wholesale pull out will affect the Metropolitan and Allied Bank or the International Commercial Bank both of which have Malaysian capital.

An Economic Analyst told the “Voice” that such developments have a ripple effect in the international business community. Said he, “The earlier the government moves to calm the situation the better it will be for the business environment. The government may not like the face of the Malaysians but the treatment it metes to them is being closely watched all over the world. It is natural.”

The loss of interest in Ghana and the imminent pull out by the Malaysians comes just when Mr Bentum-Williams, former Managing Director of SSB and immediate past Executive Secretary of the Ghana Chamber of Mines has been appointed as envoy to Malaysia by President Kufuor. President Kufuor himself is arranging to pay a visit to Malaysia in March on his way back from the Commonwealth summit in Auckland, New Zealand.

Unconfirmed reports received by Wednesday night say President Kufuor has rescinded the government’s decision to abrogate the agreement with Telecom Malaysia. It was not immediately clear if there was any connection between this decision and the sudden resignation of Prof S.K.B. Asante as Chairman of the Board.

Prime Minister Mahathir of Malaysia a fierce defender of Third World interest and a firm believer in South Africa Economic Cooperation visited Ghana in 1996. He was instrumental in pushing for Malaysian investment in Ghana. Their investments in Ghana, South Africa and other African countries took a tumble when Asia was hit by the international currency cries of 1998.

Under Prime Minister Mahathir, Malaysia rejected the prescription of the IMF and World Bank for solving the crisis. However, the country’s economy has made a remarkable recovery after adopting its own radical approach.