Business, Government, and the Privatisation of the Ashanti Goldfields Company in Ghana

Abstract

The privatisation of Ashanti Goldfields Company (AGC) was an important part of Ghana’s neo-liberal reforms. Privatisation is explicitly intended to alter the balance of power between the public and private sector, and the process revealed much about the relationship between the state and the country’s business community. A close examination of the process confirms widely-held perceptions of the Rawlings government and its reform process as highly state-driven and subject to the personal idiosyncrasies of the country’s president. By contrast, Kufuor’s New Patriotic Party (NPP) demonstrated a less equivocal commitment to boosting the role of the private sector in the economy and employed a more routinely institutionalised set of interactions. While the outcome of these processes was sometimes counterintuitive, overall the privatization of AGC is likely to have shifted power out of the hands of the state and into the hands of an international set of shareholders.