Scrap State-owned Enterprises – Casely-Hayford
Financial Analyst, Sydney Casely-Hayford is suggesting that all state-owned enterprises be subsumed into a Ministry as most of them have become redundant over the years.
According to him, some of the state-owned enterprises such as the State Housing Company have outlived their usefulness.
Highlighting on the real estate industry in Ghana, Casely-Hayford observed that there are a lot of estate developers who are building to satisfy the varied housing needs of Ghanaians, therefore, ‘there is no need for a state housing programme.’
The State Housing Corporation in 1995 was converted into a limited liability company but Casely-Hayford insists the company must be dissolved.
Ghana at the moment has a housing deficit of 1.7 million units and the government has given indications it requires public-private partnership to address the deficit.
The President, John Mahama has also called on mortgage institutions to partner government to provide sufficient housing units for government workers and other individuals.
Although the real estate and mortgage business is booming in Ghana, affordable housing still remains a problem.
Casely-Hayford is therefore recommending the setting up of a home financing programme through which people can access loans on a long-term basis to build shelter for themselves.
The existence of the home financing programme, he noted, will help the youth ‘get a good secure mortgage that you can take when you come out of the university at 25.’
‘You should be able apply for a 15-year mortgage and by the time you finish paying it, you are about 40 or 50 years old then life starts…because your mortgage is not a burden anymore,’ he explained.
In relation to transport, the financial analyst suggested that the metro mass bus transit system be scrapped stating that, ‘there is no need to have it.’
He said the system does not necessarily have to be run by the state ‘because there are competitors in the market who are private sector and are doing well.’
He again proposed the metro mass bus system be sold off to private transport operators to increase efficiency and prevent a likely collapse such as the intercity STC.
Casely-Hayford cautioned against government interference saying, ‘don’t have this SSNIT [Social Security and National Insurance Trust] where SSNIT is trying to control things so government thinks it owns it. Let it go and let it work!’
According to him, government’s best bet it is cede off the state-owned enterprises to the private sector explaining that ‘the private sector finds its way. So long as the market is not too controlled and too distorted, the private sector will find a way to make it work.’
Credit: Efua Idan Osam
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