The Ghana Federation of Labour (GFOL) has welcomed the decision by the Agricultural Development Bank (ADB) to list on the Ghana Stock Exchange, saying the move will be beneficial to the bank and the entire country.
“We are in support of the share floatation because this would generate the needed capital to inject into the operations of the bank to make it profitable and more relevant”, Mr Abraham Koomson, Secretary-General of the federation said.
He was speaking with the Daily Graphic after a meeting with management of the bank to ascertain the facts with regard to the intended Initial Public Offer (IPO).
He also discussed with bank officials, the agitation by workers against certain decisions taken by those in charge of running the business.
The management of the ADB has been consulting widely with stakeholders on the bank’s intention to list on the stock exchange.
The Farmers and Fishermen Award Winners Association of Ghana and the Ghana Union of Traders Associations have all held discussions with bank officials since the agitations by workers began.
The bank intends to raise about GH¢300 million to recapitalise and improve its operations.
“Too many state-owned industries have been lost simply because they had not been profitable and the management of those organisations, instead of listing on the stock exchange, have rather been in favour of divestiture. That situation has resulted in the loss of many state assets. We cannot afford to lose this one too,” Mr Koomson said.
“We are convinced beyond doubt that the ADB’s move to list on the stock exchange is the way to go. We support the move. I commend the management of the bank.
“What they are doing is in the interest of both the bank and the country.
“We urge all stakeholders to support this move because the records show that it is more beneficial to raise money on the market to revitalise the operations of a bank than to put it on divestiture”, he added.
Mr Koomson accused the workers of having “lost focus” and deviating from their core mandate and said if they had any ideas about making the bank more profitable, they had to present them to management.
“What they are doing is destroying the bank. The behaviour of the union is affecting the fortunes of the bank. If you are in a boat and it is sinking, you do not create more holes to sink it faster,” he said.
He advised the workers to support the move of the bank and acquire shares when the floatation begins instead of kicking against it.
The Managing Director of the ADB, Mr Stephen Kporzdi, explained that with the current ownership structure, the bank was unable to access medium and long-term funds that existed elsewhere including financial institutions such as the International Finance Corporation ( IFC ).
He urged the public to support the decision taken by the bank as this would ensure that the bank becomes an effective financial institution capable of helping businesses to grow.