Economist calls for Presidential Commission on Financial Reform

Accra (Greater Accra) 21 April 

Dr Sam Mensah, a Financial Economist on Wednesday called for a Presidential Commission to tackle financial sector reforms in a comprehensive manner. Such a Commission would provide opportunity for the country to identify the requisite policy and regulatory linkages within the financial sector and between the financial sector and the wider economy. Dr Mensah, who is also Technical Advisor to CDH Financial Holdings Limited, was speaking at a lecture organised by the Ghana Stock Exchange (GSE) and Chartered Institute of Marketing Ghana (CIMG) as part of activities marking CIMG's 10th anniversary.

On the topic: " The Ghana Stock Exchange: Past, Present and Future", Dr Mensah noted that with a Presidential Commission, policy measures could be properly integrated across the entire spectrum of financial institutions and transactions. "Such a holistic view of the sector is needed to ensure that the components of the sector complement each other. "The legal framework should be looked at comprehensively, so that the Companies Code, Securities Law, bankruptcy, collection and enforcement procedures can be made consistent with other."

Dr Mensah said the Commission would allow a review process that is driven from within, based on the wealth of our experience in Ghana. "This, I submit, is a much better process than the conflicting diagnostics and solutions that have been forced upon us over the years by foreign consultants sent by bilateral and multilateral donors".

He suggested a fund management industry, which makes fund available to commit to the market, government debt funded structure and use of privatisation as a means of improving financial inter-mediation through public floatations.

Dr Mensah called for the abolishing of the fixed commission system of the Ghana Stock Exchange in order to foster competition within the brokerage industry.

Mr Frank D. Tweneboa, General Manager of GSE, traced the history of the Exchange from the period of prospecting to the days of Accra Stock Exchange Company in 1968 to the Stock Exchange Act in 1971. "During this period locating buyers was a real drudgery and brokers had a lot to do in this regard".

Thereafter, trading went on in companies that were not publicly owned until the birth of the Ghana Stock Exchange on November 12, 1990 with seed capital of three members.

Mr Tweneboa said the GSE is an offspring of the financial sector reform programme to enhance the development of private enterprises in raising long term capital for expansion.

Presently, the GSE provides the best regulatory framework for the purposes of accessing capital for long-term finance that is difficult to get from the traditional banks, he said.