Pulse.com.gh logo

Ghana Capital Market Ghana Alternative Stock Market to collapse if…

  • Published:

The Ghana Stock Exchange’s Alternative Market risks collapse if management systems are not immediately revised to make the market more efficient.

play Ghana Stock Exchange

This is the believe of some investment brokers, including Executive Director of CDH asset management, Seth Aryitey.

Although it is deemed as an innovative move by the Ghana Stock Exchange, the Alternative Market may well become a white elephant if the fate of Small and Medium Scale Enterprises in the country do not improve.

It is believed that the alternative stock exchange,  which has been established for SMEs and requires relatively less amount of capital to enlist,  compared to the GSE Index itself, is struggling because of the current slump in growth for SMEs.

READ MORE: Ghana Telecom Vodafone Ghana not enlisting on Stock Exchange any time soon

However, other analysts say the management systems of the Ghana Stock Exchange used in running the Alternative market must be effective enough in order to attract more SMEs to subscribe.

Being in existence for almost a year now, the GAX seeks to assist businesses in the SME sub-sector to access funds to enhance growth.

To qualify to list on the GAX, a company is expected to as have a minimum stated capital of GH¢250,000 at the time of listing.

play Ghana Stock Exchange


Samba Foods was the first to list on the GAX after realizing its target of GH¢2.5 million by offering over 3 million ordinary shares to the investing public.

“We lack so much capacity especially when it comes to management and leadership. It is something that we have all been talking about. If we are able to work on that so that we get efficient management and leadership in place, we would be able to improve the system. I can tell you that the prospects are bright”, the CEO of CDH Asset Management told CITI FM.

The GAX accommodates companies at various stages of their development, including start-ups and existing enterprises, both small and medium. Some of the benefits to businesses that subscribe unto the platform are; easier access to long term capital; access to long term capital at a relatively lower cost; improvement in the financial position of the GAX Company.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Illegal Operations Menzgold extends suspension of gold vault market servicesbullet
2 Ponzi schemes in Ghana These investments are Ponzi schemes in Ghana,...bullet
3 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
4 Illegal Operations Menzgold customer threatens to sue over...bullet
5 Fuel Prices IES predicts fuel prices to go upbullet
6 How to create a verified PayPal account Learn how to create a...bullet
7 Kotoka International Airport GACL to move all domestic...bullet
8 Corruption? Oil companies deny ¢40.5m payments in Chief of...bullet
9 Economy of Ghana Vice President Bawumia says Ghana's...bullet
10 Retrenchment ATL sacks 200 workers, rest of staff not...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 Former Capital Bank staff grills pork for survivalbullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Support Finance minister buys Kantanka carbullet
7 Bozoma Saint John 10 quotes from Uber top official, Bozoma,...bullet
8 Selorm Adadevoh MTN CEO dances Agbadzabullet
9 Plane Crash Starbow suspends operations following plane...bullet
10 Tech 6 reasons you should buy an iPhone SE instead of...bullet