REVISED LOCAL CONTENT POLICY TO COMPEL MULTINATIONALS TO LIST ON GSE

Revised local content policy to compel multinationals to list on GSE

Source: Ghana | Myjoyonline.com | Joy Business
Date: 17th-march-2017 Time:  4:36:19 pm

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Multinationals operating in the country could soon be asked to list on the stock market as part of proposed changes to the country’s local content policy. 

The move is part of a broader policy by government to ensure that indigenes are able to own part of most of the foreign firms operating in the country.

The policy could first start with just encouraging these firms and later look at the option of putting the necessary laws in place, for the firms to go public and list on the Ghana Stock Exchange (GSE).

Sources say government might even take the lead with its plan to float some of its interest in state-owed institution, especially those in the energy sector.

Sources say some of these foreign firms have already taken steps, to list, by engaging transaction advisers.

However, for some, the challenge is that most of the firms are still struggling to convince their shareholders outside the country about the policy.

Another concern, for the regulators, is the response of some Ghanaians to a public offering by foreign firms and whether there will really be active participation during these Initial Public Offering (IPO).

This is to enable them to take some significant stake in these multinationals, which analysts are worried may affect this policy.  

 

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