Stock market managers welcome listing of VRA, GRIDCo

Business News of Saturday, 25 February 2017

Source: citifmonline.com

2017-02-25

Kofi Yamoah, Managing Director, GSE

The Managers of the Ghana Stock Exchange (GSE), have welcomed government’s decision to list the VRA and the Ghana Grid Company Limited (GRIDCO) on the stock market.

They contend that the move will support the growth of the market while deepening the efficiency of the two institutions.

As a result, the Managing Director of the GSE , Kofi Yamoah, has refuted former Energy Minister, Dr. Kwabena Donkor’s statement about government’s plans to list the GRIDCO on the stock market.

Mr. Donkor who had described the move as unfortunate believes listing GRIDCO on the market will be doing the country a disfavor.

But the GSE boss totally disagrees with the former minister.

He explains to Citi Business News floating shares of GRIDCO on the stock exchange, will accrue benefits to the power sectors.

“Some of the comments he made, for example, was that GRIDCO was profitable. He also alluded to the fact that GRIDCO and VRA are the brain sectors of the economy. Number three the decision is more or less ill advice. If a company is profitable and you make it publicly listed, the army of shareholders that come behind the company will make sure that is it even more efficient.”

He added that “It is even more profitable because you have put money into it not only state-owned funds…that alone puts the company on its toes to be more efficient and more profitable going forward.” he said.

President Nana Akufo Addo in his maiden state of the nation address indicated that listing the VRA and GRIDCo on the local bourse will be one of the many options to be considered by his administration.

According to the President, the move should improve the financial strength of the institutions and eventually transform the power sector to propel economic growth.

Some analysts in the energy sector have however cautioned of long-term costs to government should it rush through the process to list the Volta River Authority (VRA) and the Ghana Grid Company Limited (GRIDCO) on the Ghana Stock Exchange.

Source:Jataba.com

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