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GT Sale Crucial - Says Pianim |
| A Ghanaian economist, Mr Kwame Pianim, yesterday joined the debate on the sale of Ghana Telecom (GT) arguing that sustenance of the Ghanaian economy depended on the money to be paid for GT by the British company, Vodafone. |
He said Ghana's economy needed about $130 million injection to stay healthy and that the $900 million expected from the sale of 70 per cent of GT shares to Vodafone could provide that critical support, strengthen the macro economy and control inflation.
"If we do not get the money from Vodafone, inflation will go up, which will greatly affect the poor," Pianim told the Daily Graphic in Accra yesterday.
He was sharing his views on the debate in which the Minority in Parliament, opinion leaders and some civil society organisations have kicked against the proposed sale.
Pianim said as a result of the rise in the price of crude oil, proceeds from cocoa were "not enough" to pay for the oil, which now sold at $130 per barrel.
Besides, he said, the market capitalisation of all the banks on the Ghana Stock Exchange was less than $1 billion and, therefore, the banks could not raise the needed capital to support this year's budget or cushion the economy.
Pianim, former Chairman of the Public Utilities Regulatory Commission (PURC), said last year Parliament approved that proceeds from the sale of GT be used to finance this year's budget and noted that any attempt to reverse that decision would greatly affect the budget and consequently weaken the economy.
That, he pointed out, would mean that the government could not disburse budget allocations to important sectors of the economy.
Therefore, the sale of GT to Vodafone “is our chance and if we back out of it, we are finished,” he contended.
Pianim's view is that since Vodafone is a world-class company with a lot of goodwill, its coming to Ghana would be an investment promotion, since it would put Ghana on the international investment radar.
He argues further that if the government fails to sign the deal with Vodafone, the former’s credibility would be dented at the international level. "If the government backs out of the deal, we are telling the world that when the Ghana government signs something, it is useless".
He said the competitive landscape of the telecommunications sector had changed and that capital injection, technology improvement and infrastructural development were needed to stand the competition, noting, regrettably, that GT was lacking in all those aspects.
In comparison he said MTN, another service provider, was far ahead of GT in the cellular telephone industry because of its huge investment base and projected that between six months and one year the government would have to give GT away if the deal with Vodafone was cancelled.
Pianim said besides the $900 million that Vodafone would pay for 70 per cent of GT shares, the company would invest about $1 billion to improve infrastructure in GT.
The deal would create more jobs, as Vodafone would expand GT’s offices in the country, he noted, while admitting that some non-performing managers and junior staff would be laid off. |
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