Unlocking Ghana's Capital Market Potential: A journey through the Ghana Stock Exchange

The GSE's significance stretches well beyond its inception. Over the past 32 years, it has raised approximately GHS 7 billion in equity capital and GHS 13 billion in debt capital, cementing its position as Ghana's premier platform for raising long-term capital. In addition, through its secondary trading market activities, it has facilitated approximately GHS 16 billion in Foreign Direct Investment (FDI) into the nation.

The GSE at a Glance: A catalyst for economic growth

The Ghana Stock Exchange has a vision - to become an internationally recognized securities market relevant to Ghana's economy. Its mission is clear: to provide an efficient securities market for national economic development through access to capital and investment.

The GSE offers a diverse range of investment choices, with 36 listed securities and 12 corporate debt issuers on its market. The Ghana Alternative Market (GAX), targeted for SMEs, features six listed companies, promoting development and innovation in smaller businesses.

Investment opportunities and initiatives

The GSE provides several benefits to investors. Among the primary advantages are high growth potential, portfolio diversification, and attractive dividend yields. However, as part of any investing plan, it is critical to recognize risks such as market volatility and currency risk.

Recent initiatives demonstrate the GSE's dedication to development and sustainability. A Commercial Paper (CP) market and an Over the Counter (OTC) market are slated for launch soon, opening up new opportunities for capital raising and trading. Engagement with state-owned enterprises and private-sector firms strives to list more companies to increase activities on the Exchange.

Corporate governance and sustainability

In its pursuit of sustainability, the GSE worked with the Global Reporting Initiative (GRI) to help listed firms adopt Environmental, Social, and Governance (ESG) principles. ESG disclosures have made their debut in the GSE’s Annual Report, a significant step toward promoting ESG adoption and Sustainability reporting.

In addition, the Exchange has established a market for Green and Sustainable bonds, in line with worldwide initiatives to address climate change and address other societal and environmental needs through sustainable financing. It has also joined the United Nations Sustainable Stock Exchanges Initiative, demonstrating its commitment to ethical business practices.

Abena Amoah, Managing Director of the Ghana Stock Exchange (GSE) Pulse Ghana

Empowering the Future: Financial literacy and youth education

The GSE is committed to financial literacy as well as good investment practices. The "Your Money Series" program, created in collaboration with the Central Securities Depository (CSD) and the Ghana Securities Investment Association (GSIA), educates the public on the fundamentals of saving and investing.

The GSE's collaborated with Central Securities Depository and Young Investor Network to launch the Youth Investor Education program including Finance Training Tours, Stock Pitch Competitions, and Capital Market Quizzes, with the goal of grooming the next generation of astute investors.In 2022, we visited 37 tertiary and Senior High Schools and reached out to over 5000 students.In 2023,23 schools have been engaged already reaching out to 8615 students so far with a few more schools to go.

Empowering investors and businesses

The GSE's commitment to establishing an investing culture goes beyond the metrics. It actively collaborates with numerous stakeholders to create a strong financial ecosystem. This includes regular workshops and site tours for the private sector, which will prepare companies for future listing on the exchange.

Furthermore, the GSE has reached out to members of the Standford Seed Transformation Network, working closely with over 100 businesses to prepare them for future listings. This significant relationship extends worldwide, with discussions and cooperation with organizations such as the Canada Ghana Chamber of Commerce and the Swiss Business Community.

Strong online presence and digitalization

The exchange refreshed its digital platforms in June 2022 and revamped its website in March 2023. The results were remarkable, with roughly 17,000 new followers on platforms such as Twitter, Facebook, and LinkedIn. These platforms are now sites for the distribution of educational content, market reports, and event announcements.

The GSE was an early adopter of digitalization, automating its trading operations as early as 2009. This forethought ensured that activities ran smoothly even despite the worldwide outages caused by COVID-19. The GSE has developed the GSE Market Watch Portal, which allows the public to readily monitor trade operations.

Collaborations with market participants have resulted in digital solutions such as TradeLive for virtual securities trading, Cedi Manager for fixed-income securities, and SecondSTAX for cross-border securities trading.

Conclusion: Unlocking Ghana's capital market potential

Finally, the Ghana Stock Exchange is a testament to Ghana's economic aspirations. It has a long history, extending back to 1990 of mobilizing finance, facilitating investments, and propelling the country toward prosperity.

The GSE's vision of becoming an internationally recognized securities market relevant to Ghana's economy is now closer than ever. Initiatives promoting sustainability, financial literacy, and youth education reflect a comprehensive approach to capital market development. The development of new markets, brand awareness efforts, and a strong web presence all point to a promising future.

As we continue our journey through Ghana's financial heart, the Ghana Stock Exchange urges investors, businesses, and citizens to work together to realize the country's immense financial potential. It's a journey full of potential, progress, and a common goal for a better financial future for all individuals.