Sun, 09 Jun 2024 Feature Article

Are IPOs the best and most impactful privatisation model for profitable state-owned companies in Ghana?

Are IPOs the best and most impactful privatisation model for profitable state-owned companies in Ghana?

Dear critical-reader, for years, some of us have suggested - but to no avail because the idea has always fallen on deaf ears - that our hard-of-hearing greed-filled state-capture rent-seeking big-thieves-in-high-places, ought to opt for the best and most effective way of privatising state owned commercial entities, by adopting the partial privatisation model used to privatise the well run and profit-generating partially state-owned oil marketing company, GOIL (Ghana Oil Company Limited), in which the state still maintains a stake and receives dividends regularly from.

It is for that reason that we are, as controversy rages over the mooted privatisation of hospitality sector entities owned by the Social Security and National Insurance Trust (SSNIT), publishing Meta's WhatsApp's AI Llama 3's response to our query on IPOs for privatising state owned commercial entities, in the hope that that will find favour with our current criticism-averse government-of-the-day to the question that wise and aspirational Africans, such as the good people of Ghana (whose lives have been turned upside-down by an unprecedented cost-of-living crisis fueled by price-gouging greedflation, and have suffered the ignominy of seeing their Republic being bankrupted), would want to ponder over: Are IPOs the best and most impactful privatisation model for profitable state-owned companies in Ghana?

Please find the response from Meta's WhatsApp's AI Lhama3:

"Privatization through Initial Public Offerings (IPOs) can be an attractive option for state enterprises for several reasons:

1. *Transparency and Fairness*: IPOs offer a transparent and fair process, allowing the public to participate in the ownership of the company.

2. *Wider Ownership*: IPOs enable a wider distribution of shares, spreading ownership among various stakeholders, including institutional investors, retail investors, and employees.

3. *Capital Generation*: IPOs can raise significant capital for the company, which can be used for growth, modernization, and debt reduction.

4. *Improved Efficiency*: Privatization through IPOs can introduce market discipline, leading to improved efficiency, productivity, and competitiveness.

5. *Better Governance*: Listed companies are subject to stricter governance and regulatory requirements, ensuring greater accountability and transparency.

6. *Increased Liquidity*: IPOs provide a liquid market for shares, allowing investors to buy and sell easily.

7. *Enhanced Reputation*: A successful IPO can enhance the company's reputation and credibility, attracting customers, partners, and talent.

8. *Reduced Burden on Taxpayers*: By divesting state-owned enterprises, governments can reduce their financial burden and focus on core public services.

However, it's important to consider the context and potential risks, ensuring that privatization through IPOs aligns with the country's economic goals and social priorities."

End of quoted Meta's WhatsApp's Lhama3 response to our query on using IPOs to privatise state owned commercial entities.

Finally, dear critical-reader, we do hope that the above quoted response to our query on using IPOs for privatisations in our bankrupted Republic, from Meta's WhatsApp's AI Lhama3, will make our ruling elites see the sense in always opting for IPOs on the Ghana Stock Exchange (GSE), using the GOIL partial privatisation model, as the best and most impactful privatisation model for all profitable state-owned companies in Ghana, oooo, Ghanafuor. Full stop. Case closed. Yooooooooo. A word to the wise...

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Started: 02-07-2024 | Ends: 31-10-2024