Listing GRIDCo on stock market: Managers discredit Kwabena Donkor’s claims

Managers of the Ghana Stock Exchange (GSE) have discredited claims by former Power Minister, Dr. Kwabena Donkor indicating his pessimism of the prospects of listing the Ghana Grid Company Limited (GRIDCo) on the stock exchange.

According to the Managing Director of the GSE, Kofi Yamoah, the decision is a laudable one and should be supported by all stakeholders.

Dr. Kwabena Donkor has asserted that listing GRIDCO on the market will be doing the country a disfavor.

But the GSE Boss 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 the 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.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.