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 COMPANY PROFILE
 ESTABLISHMENT OF DIC
The Government of Ghana, as part of its overall Economic Recovery Programme, is pursuing a programme of divestiture of state-owned enterprises (SOE’s). The SOE reform programme was launched in 1988 and this programme consists of both measures to improve the performance of enterprises where they remain state-owned and the rationalization of the state sector by means of the divestiture programme.
The Government of Ghana established the Divestiture Implementation Committee to implement and execute all Government policies in respect of this divestiture programme.
The divestiture programme is intended to reduce the size of the public sector and to improve the performance of enterprises by mobilizing private sector management and capital. The financial and managerial burden on Government will be reduced and the state will be able more efficiently to manage the business of Government. The proceeds from the sale of enterprises can be used to improve , among other things, infrastructure, health services and education.
FUNCTIONS OF DIC
Details about DIC are set out in the Divestiture of State Interests (Implementation) Law, 1993 (PNDC Law 326).
DIC’s functions under the law are:
to plan, monitor, coordinate and evaluate all divestitures;
to arrange for the effective communication of Government policies and objectives for any divestiture;
to develop criteria for the selection of enterprises to be divested and assume responsibility for preparing such enterprises for divestiture;
to make appropriate consultations for successful processing all divestiture programmes; and
to ensure consistency in procedures for divestiture, in particular with regard to valuation, invitation for bids, negotiation of sales and settlement of account.
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MEMBERSHIP OF DIC
The members of DIC comprise ministers of state and trades union, institutional and private sector representatives. The day-to-day management of the divestiture programme is undertaken by a Secretariat, led by an Executive Secretary. The members of DIC meet regularly to consider, among other things, specific transactions negotiated by the Secretariat, submitting, as applicable, recommendations to the President’s Office for approval. DIC is assisted by specialized sub-committees on mining and cocoa and coffee plantations.
FOREIGN SUPPORT
Financial support and advice is provided to DIC by the World Bank. DIC also receives assistance from the United Kingdom’s Department for International Development (DFID), formerly the Overseas Development Administration. This is in the form of technical support on financial, legal and other aspects of divestiture.
RESULTS ACHIEVED
The divestiture program got underway, in terms of results, in 1990/91.
As at 31st December 1997, the divestiture of 201 SOEs (or parts of SOEs) had been authorised by the President’s Office. The breakdown, on an annual basis (highlighting the mode of divestiture), is as follows:
MODE to 1991 1992 1993 1994 1995 1996 1997 TOTAL
Sales of assets 16 4 3 30 19 18 15 105
Sale of shares 11 5 2 2 6 1 2 29
Joint Venture 6 3 1 4 0 4 1 19
Lease 3 1 0 1 0 0 1 6
Liquidation 24 2 5 5 6 0 0 42
60 15 11 42 31 23 19 201
ENQUIRIES :
For more information on divestiture programme, please contact:
Executive Secretary
Divestiture Implementation Committee
F35/5 Ring Road East, North Labone
P.O. Box CT102, Cantonments
Accra, Ghana.
Tel: 233-21- 77 20 49 / 233-21- 77 31 19 / 233-21- 76 02 81
Fax: 233-21- 77 31 26
E-mail: dicgh@ncs.com.gh
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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Ghana published in Forbes
December 13th 1999 Issue.
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GHANA
