The Ghana Chamber of Telecommunications says Ghana would be sending a wrong signal to investors if it compels telecom operators to list on the Ghana Stock Exchange (GSE).
According to the Chief Executive Officer of the chamber, Kwaku Sakyi Addo the telecom industry is capital intensive and this makes it difficult for telecom companies to raise the required capital within Ghana to expand their business.
“This is a very capital intensive business and if that is the direction the managers of the economy wish to go or the stock exchange wish to go then we should make it attractive for companies to do so and make it irresistible for them to want to list on the stock exchange.”
The first Deputy Governor of the Bank of Ghana (BOG) Millison Narh had earlier called for a policy which will compel telecom operators in the country to list on the Ghana Stock Exchange.
This, the First Deputy Governor believes will help address and reduce forex market pressures in the country.
The World Bank earlier expressed worry over the 80% hold of the Ghana Stock Exchange by a few companies saying the development has suppressed competition in the sector.
Industry players believe the listing of Telcos on the Ghana Stock Exchange will reduce the frequent transfers of profits outside the country.
Speaking to Citi Business News, Kwaku Sakyi – Addo said the stock exchange should rather be made more attractive to attract blue chip companies to list.
He adds the right to list must be the sole decision of telecom companies.
“I don’t think that anyone should be compelled to list on any stock exchange. I think that listing on the Ghana Stock Exchange should be a matter for businesses themselves to decide.”
Kwaku Sakyi – Addo told Citi Business News, “if for strategic reasons we want to attract certain kinds of companies or businesses or blue chip firms to list then we should make it attractive to do so, we’ve got to as a country give them a good rational, business case, to do so, but to compulsion is not a good idea. It sends a bad signal to businesses and investors, as the means by which you grow your stock exchange.”
By: Norvan Acquah-Hayford/citifmonline.com/Ghana