The Managing Director of the Social Security and National Insurance Trust, (SSNIT) Kofi Bosompem Osafo-Maafo has emphasized the Trust’s commitment to enhancing the profitability of its hotels.
“We are revisiting our approach. We’re exploring private sector investments for a very clear reason—the returns have been below expectations, and the sector requires substantial investment, which we cannot fully support,” Osafo Marfo said at a press briefing in Accra.
His statement highlights SSNIT’s recognition of the challenges it faces in managing its hotel portfolio, particularly the need for increased investment to drive profitability.
Osafo-Maafo’s acknowledgment that returns have been “below expectations”, indicates a critical assessment of the current performance of these assets, suggesting that the Trust is actively seeking solutions to improve its financial outcomes.
He further explained that SSNIT is considering alternative funding options and enhancing its portfolio to address these challenges.
These remarks come in the context of the recent suspension of the sale of a 60% stake in four properties, including the Labadi Beach Hotel and La Palm Royal Beach Hotel, to Rock City Hotel Limited.
The decision to halt the sale followed nationwide protests and an indefinite strike by labor unions, who argued that the transaction was not in the public’s best interest.
Despite the opposition to the planned sale, Osafo-Maafo says the Trust will take the concerns seriously, stating that, “we’ve decided to go back to the drawing board and will outline the next steps in due course.”
