GSE supports listing of power providers
The Ghana Stock Exchange (GSE) has supported plans by the government to consider listing the Ghana Grid Company Limited (GRIDCo) and the Volta River Authority (VRA) on the local bourse.
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The Managing Director of GSE, Mr Kofi Yamoah, told the media in Accra that the decision to consider floating a part of the utility companies on the GSE was a step in the right direction, because it will make them more efficient and profitable.
The President, Nana Addo Dankwah Akuffo-Addo, said in his first State of the Nation Address that the government was going to roll out an electricity master plan that will explore the benefits of listing the two entities, which have been saddled with a US$2.4billion debt.
This announcement, however, sparked controversy, with the Minority in Parliament fearing that it will be a ploy to privatise or sell off these two critical companies.
Mr Yamoa, however, expressed a different view.
“I do not see why some people are against this. The listing of these companies will make them more efficient and consumers will be better off if they become more efficient,” he stated.
Using the cocoa sector as an example, the GSE MD said cocoa, which was also a critical sector, had been liberalised and had more than 20 cocoa buying companies.
As a result, he said he did not see why people would oppose the liberalisation of VRA and GRIDCO because they claim they are critical to the country.
Investing pension’s fund
The Managing Director also pointed out that the successful listing of these companies would even provide instruments for pension’s fund to be invested in.
“If these companies become profitable and are listed, it will provide an opportunity for pension’s fund which we all contribute to as workers to be invested in such profitable companies which will ensure the security of the pensioners,” he said.
He said this would also lead to the deepening and development of the stock exchange market.
afb post impressive results
afb Financial Services posted significant results for the 2016 financial as it recorded a profit before tax of GH¢7 million.
The company also made a 30 per cent growth in its loan book, representing over 300 per cent increase for the business.
It also improved its revenue which was supported by the introduction of new products, expansion of branch network and rigorous measure put in place to control expenses.
Its operating income also shot up by 45 per cent whiles operating expenses witnessed a marginal increase of 15 per cent.
The Managing Director of afb, Mr Arnold Parker, said it achieved its 2016 goal which was to focus on its balance sheet growth and to increase profitability.
He said the important highlight of the year was the 100 per cent sale of afb Ghana to Letshego Holdings Limited, a Botwana based financial services group with presence in ten African countries.
He said the transaction had been approved by the Central Bank and was currently pending the approval of the Securities and Exchange Commission.
“It will be recalled that afb listed bonds on the Ghana Alternative Market in 2015 to restructure its balance sheet and there is every indication that this strategic move has turned around the fortunes of the company significantly,” he said.