Ghanaian Government Announces Plans to Sell 17 Public Companies to Raised Funds Amid Debt Crises
- Ghana is planning to dispose off some troubled state-owned enterprises under a divestiture programme
- Joseph Cudjoe the minister for Public Enterprises said the government is taking the decision because they were stressing the state financially
- He did not disclose when the divestiture will start but said government was keen on getting rid of them
The Ghanaian government has disclosed plans to sell off some 17 troubled state-owned enterprises to raise funds.
Joseph Cudjoe, who heads Ghana's ministry for public enterprise said the sale is under the divestiture programmer designed to will save the state from continuous spending on them.
Joy News reports that the minister said the government wants to “get rid of them“ and save the country from further wastage.
Source: Facebook
He said some ministries have also expressed their intention to use some of the defunct assets for flagship initiatives like the One District, One Factory run by the trade ministry.
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The agric ministry may also use some of the defunct companies for the country's Planting for Food and Jobs programme.
Ghana debt crises
In the last few months, Ghana has been on the news for the wrong reasons as it faces its worst economic crisis in decades..
A recent report by Reuters revealed that the West African country has been struggling to service its debt since the start of 2022.
The country's public debt stood at 467.4 billion Ghanaian cedis ($55 billion) in September, of which 42% was domestic.
Lessons for Nigeria
Just like Ghana Nigeria has a debt burden which the Debt Management Office said stood at N44. 06 trillion as the end of September 2022.
Although, Nigeria is yet to have any problem repaying its debt, the signs of a stretched economy are there.
Recently the Guardian reported the World Bank warning that Nigeria’s debt service cost to revenue ratio could hit 160 percent in five years.
World bank pleaded with the federal government to implement broad-based reforms to revive the economy which Legit.ng captured in an earlier report.
The list of African countries with highest debt to China, amount and what the debts are used for
Meanwhile, Macau is the only country in the world that is debt-free, according to the International Monetary Fund (IMF).
The world’s greatest economies rank among the 20 countries with the highest external debts.
They are the US, Russia, United Kingdom, France, Germany, Japan and China, according to a Daily Trust report.
Source: Legit.ng
