Franklin Cudjoe Says SSNIT’s Decision to Sell Its Stakes to Hotels is Fair

Franklin Cudjoe, President of IMANI Africa, has lauded the Social Security and National Insurance Trust (SSNIT) for its decision to divest its stake in six hotels, deeming it a prudent course of action.

Cudjoe expressed his approval of SSNIT’s move to engage the private sector in co-investing in hotels owned entirely by the trust but facing operational inefficiencies. He contended that this approach would result in a more efficient allocation of resources, benefiting both SSNIT and the broader economy.

According to Cudjoe, divesting from these hotels would not only infuse liquidity into SSNIT’s operations but also curtail political interference in the management of these assets. In a Facebook post on Tuesday, May 21, Cudjoe reiterated his endorsement of the initiative, stressing that the negotiated sale price for the four hotels is fair and equitable.

Overall, Cudjoe’s support highlights the potential advantages of SSNIT’s decision to involve the private sector in its hotel holdings, signaling a move towards greater operational efficiency and transparency in managing public assets.

“I think it is sensible for a state behemoth such as SSNIT, eternally abused by past and present politicians, to scale down its real estate business, which has never been profitable.”

“Similarly, SSNIT should seek private sector participation (co-investment) in wholly-owned hotels which are all not running efficiently. Not only will that free up some liquidity, but it will also amputate the long arm of the politicians, which tend to reach into the brick-and-mortar businesses over which SSNIT has control. That said, I will support any competitive divestiture that brings on board more money, technology, and skills, and preserves Ghanaian management.”