 Opportunities
in privatization
There is no question that Ghana offers an attractive investment climate with enormous opportunities. The country has found political stability and enjoys a peaceful democratic process, demonstrated by the December 1996 general elections. And, after a slow start, the government is committed to selling off state-owned enterprises.
The Divestiture Implementation Committee
(DIC) includes government ministers and trade union,
institutional and private sector representatives.
It plans to halt the drain on government resources
from poorly run and insolvent state enterprises.
From the beginning of the program in 1988 to December
1996, 183 state-owned enterprises (SOEs) have been
sold to private investors. Divestiture methods vary,
and have included outright sales, share issues,
joint ventures, leases, and, when all else fails,
liquidation.
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Successes recorded by privatized companies in terms of modernization, productivity gains and job creation, have greatly reassured workers' fears of mass layoffs. The government wants to accelerate the divestiture program by outsourcing some SOEs to the private sector under the close supervision of the DIC. Ghana's divestiture program is being financed by the World Bank , through an International Development Association credit facility.
| ECONOMIC OUTLOOK |
1993 |
1994 |
1995 |
1996 |
1997 |
| Real GDP growth (%) | 5.0 | 3.8 | 4.5 | 5.2 | 5.5 | | End year inflation (%) | 28 | 34 | 71 | 33 | 20 | | Export (USD bn) | 1.1 | 1.2 | 1.4 | 1.5 | 1.6 | | Import (USD bn) | 1.7 | 1.6 | 1.7 | 1.8 | 1.9 | | GHC/USD (end year) | 820 | 1053 | 1449 | 1754 | 2200 |
Mr. E. Agbodo, executive secretary of the DIC
, believes divestiture has some priorities. He says:
"The most important privatization should take
place in the energy
sector and in housing, where we are considering
our refinery, our oil company, GOIL, and the State
Housing Company. We are also looking for strategic
investors for the insurance industry to encourage
the introduction of new products, and so our citizens
can have better access to insurance." |
GHANA
