The President of IMANI Africa, Franklin Cudjoe, has praised the Social Security and National Insurance Trust (SSNIT) for its decision to divest its stake in six hotels, calling it a wise move.
Mr. Cudjoe expressed his approval of SSNIT’s plan to involve private sector participation or co-investment in hotels that it fully owns but that are not operating efficiently.
“Similarly, SSNIT should seek private sector participation (co-investment) in wholly-owned hotels which are not running efficiently. Not only will that free up some liquidity, but it will also amputate the long arm of the politicians, which tend to reach into the brick and mortar businesses over which SSNIT has control. That said, I will support any competitive divestiture that brings on board more money, technology, skills and preserves Ghanaian management,” Mr. Cudjoe wrote in a Facebook post.
He believed that the strategy would lead to a more effective use of resources.
According to him, the decision would not only inject liquidity into SSNIT’s operations but would also reduce political interference in the management of these businesses.
Mr Cudjoe further reiterated his support for the decision, stressing that the agreed-upon price for selling the four hotels was fair and reasonable.
“I think it is sensible for a state behemoth such as SSNIT, eternally abused by past and present politicians, to scale down its real estate business, which has never been profitable. I think the investment plan proposed and the price agreed for the 4 hotels is fair,” he added.
