Director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, says the Trust is considering alternative management models.
The report indicates that director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, says the Trust is considering alternative management models.
It further notes that this, he said, includes leasing out some loss-making hotel assets, as part of efforts to revive struggling investments without selling them.
Speaking on Joy News’ PM Express Business Edition recently, Mr Afreh Biney insisted that SSNIT has no intention of disposing of any of its hotel investments despite ongoing discussions about restructuring parts of its hospitality portfolio.
“Let me assure the people of Ghana that we will not sell any of our hotel investments,” he said.
He drew a sharp distinction between well-performing assets and those facing operational challenges.
According to him, Labadi Beach Hotel remains one of SSNIT’s strongest investments and continues to generate substantial returns for pension contributors.
“Labadi Beach Hotel is one of our best investments. In fact, they have consistently paid dividends year in and year out. Last year alone, based on 2024 numbers, they paid us ¢17.8 million in dividends for the year 2024, but they paid it last year,” he disclosed.
He added that the hotel’s performance is expected to improve further.
“Last year they made a PBT in excess of ¢67 million with a profit after tax of in excess of ¢50 million, so clearly if you go by their dividend payout ratio of 40%, they will pay higher than they did the previous year,” he said.
Mr Afreh Biney noted that the Golden Beach Group, comprising La Palm, Elmina and Busia hotels, remains under pressure. SSNIT has therefore engaged consultants to develop a five-year blueprint to restore the group’s fortunes.
“We advertise for consultants to tender and provide us with a business blueprint on turning those hotels around in five years. We are evaluating that tender,” he said.
He indicated that some internal accountability measures are already producing results.
“La Palm last year, for the first time in fact, we don’t even remember the last time La Palm made a profit, made a profit. It may be small, ¢1.8 million, but at least bigger things start with humble beginnings. The turnaround process is beginning now,” he stated.
Mr Afreh Biney suggested that leasing could be one option for loss-making assets such as Elmina Beach Resort.
