The Government of Ghana has denied reports that the central bank plans to sell Ghana’s stake in the London-based Ghana International Bank (GHIB). This denial follows public concerns raised by IMANI Africa Vice President Kofi Bentil.
The controversy began last week after reports emerged that GHIB's board had asked its Chief Executive Officer to step down. Rumors linked the CEO's dismissal to his alleged opposition to a proposed sale of Ghana's shares in the bank. Ghana's stake in GHIB is vital for its foreign exchange operations.
GHIB, established in 1959, serves as a correspondent bank for Ghanaian financial institutions and businesses. It facilitates trade and financial links between Ghana and the United Kingdom, supporting critical international transactions. The bank’s role directly impacts Ghana's access to international markets for trade and capital.
Kofi Bentil amplified the claims on social media, criticising the Bank of Ghana's recent financial decisions. He wrote, “They sold 18 tonnes of gold and used it to reduce their losses. Then they floated a sale-and-leaseback of their office, which backfired. Now they are planning to sell Ghana's shares in GHIB, London.”
Beatrice Annan, a presidential staffer and member of the Bank of Ghana Board, dismissed the reports as false. She stated, “This is a big fat lie. Kindly disregard makers of fake news who are gasping for scandals.” The central bank has not yet issued an official statement on the matter, but the government's denial aims to calm market speculation.
Ghana's ownership in GHIB is considered strategic for the country's economic stability and international trade. Any divestment would significantly impact Ghana's foreign exchange management and its ability to conduct international business conveniently. Investors and businesses rely on such institutions for seamless cross-border transactions.
Bentil acknowledged the government's denial but raised new questions about GHIB’s funding. He questioned whether the World Bank had approved a $100 million loan for GHIB. He also asked if the World Bank had expressed interest in injecting equity into the bank, suggesting potential new developments.
The government's quick denial aims to reassure financial markets and the public. Maintaining confidence in nationally owned financial assets is crucial for Ghana's economic standing. Any uncertainty surrounding such strategic assets could affect investor sentiment and Ghana's credit rating. Stakeholders will be watching for an official statement from the Bank of Ghana.