264 state-owned enterprises to be divested

THE OFFICE OF the President had, as of December last year, authorised the divestiture of 264 state-owned enterprises (SOEs).

About 155 of the number have been approved for outright sale of assets, while 21 are through joint ventures.

Thirty-eight of these SOEs are to be divested through sale of shares while 43 and 7 such enterprises are to be divested through liquidation and leases respectively.

Mr. Thomas B. Owusu, a financial analyst, disclosed these at a public forum in Kumasi recently.

He said a number of enterprises were privatised through the Ghana Stock Exchange (GSE). Under this group are companies like AGC, Pioneer Aluminium Factory, SSB Bank Ltd, Aluworks, GCB and the Produce Buying Company (PBC).

Owusu explained that the divestiture programme which started in 1988 has helped to transform a number of enterprises which were making losses and, therefore, a drain on government.

He cited Coca-Cola Company which got $47million investment for expansion.

Ghana Agro Food Company Ltd increased its employment level from 494 to 930 in 1999 after its divestiture.

The performance level of Golden Tulip Hotel also improved as it increased employment level to 346 from 116 and the number of rooms shot up from 130 to 234.

In Ashanti, people are offered opportunities to participate in the private sector under the divestiture programme through the divestiture of a number of enterprises.

These include plantations at Juaben, Juaso, Akwansrem, Akrokerri.

Others are the Kwamo Bakery, City Hotel, Kumasi Furniture and Joinery, State Fishing Corporation at Bekwai, Obuasi and Konongo and the Ejura Farms.