Gov’t moves to restructure GIHOC under 24-hour economy plan

Government has outlined plans to reposition GIHOC Distilleries Company Limited through a comprehensive financial and operational restructuring programme aimed at aligning the company with the 24-hour economy policy.

The intervention is expected to strengthen the company’s balance sheet, enhance operational capacity, and restore its competitiveness within Ghana’s beverage manufacturing sector.

The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, disclosed this while commissioning new vehicle fleets to support GIHOC Distilleries’ operations.

She noted that addressing the company’s structural liabilities and improving operational efficiency are critical to repositioning it for growth and competitiveness.

“This investment directly addresses one of GIHOC’s most critical operational gaps, the inability to efficiently and effectively reach a distribution network and retail point across the country. My ministry recognizes that asset injection alone is insufficient to drive a sustainable turnaround.

“Accordingly, government will work in collaboration with the board and management of GIHOC to address the company’s structural financial liabilities, review its operating model for long-term viability and explore opportunities to expand its production capacity under the 24-hour economy.

“GIHOC must return to profitability and you must demonstrate that a state enterprise can compete efficiently and effectively in a liberalized market. These vehicles represent an investment of public resources, people’s taxes, including your own, and must be managed with accountability, discipline and a clear commercial strategy,” Elizabeth Ofosu-Adjare remarked.

The minister also noted that GIHOC occupies a strategic position in Ghana’s industrial history, having been established in 1958 as West Africa’s first indigenous alcoholic beverage manufacturer.

Its portfolio of bitters, spirits and other beverages, she said, continues to enjoy strong brand recognition locally and in selected export markets.

However, Elizabeth Ofosu-Adjare acknowledged that the company, like many state-owned enterprises, has grappled with structural challenges over the years, including limited working capital, aging infrastructure, and weak distribution systems.

Addressing these constraints, she explained, is central to government’s broader agenda to revive productive public-sector enterprises as engines of economic growth.

Source: Citi Business News