Energy expert Kwadwo Nsafoah Poku asserted that it’s impractical to consider listing an unprofitable company on the Ghana Stock Exchange.
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He expressed the view that such a venture would not produce the desired results.
In a discussion on Key Points, on April 20, 2024, Poku said “I agree with the Asantehene. There are many more state-owned enterprises that I think must be privatized. I am for the divestiture of some state-owned enterprises. However, before you can list them, the company should be making a profit. You cannot list an unprofitable organization on the stock exchange.”
Mr. Poku, who chairs Dr. Bawumia’s Manifesto Committee, made this statement in reaction to a proposal by the Asantehene, Otumfuo Osei Tutu II, suggesting that the government should prioritize formulating policies aimed at enhancing various sectors of the economy.
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During the inauguration of a 430-kilometer natural gas pipeline by Genser Energy in Kumasi on Wednesday, April 17, Mr. Poku expressed, “It’s about time that the government realizes that it’s not going to work for the government to be involved in setting up companies without involving the private sector, it doesn’t work. The government should concentrate on policies and involve the private sector and you can attract more investors into the country which will create more employment.”
“VRA and others are all government establishments, let’s give it out and diversify them into the private sector and get more money there and get the right people to do it. GRIDCo and others let’s give them the money and get the qualified people, diverse government from it, and let them work. Electricity Company is in a situation where we don’t know, but that also must be diversified and given to the private sector,” The Otumfuo suggested.
Nonetheless, Mr. Poku emphasized that the financial performance of these organizations must undergo significant improvement to appeal to the necessary investors once they are listed on the Ghana Stock Exchange.
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