Ofori-Atta launches five-year strategic plan for SEC as it marks 25-years anniversary

Minister for Finance, Ken Ofori-Atta, expressed optimism about the launch of a five-year strategic plan for Ghana’s Securities and Exchange Commission (SEC) as part of events marking the regulator's 25th-anniversary celebrations.

Speaking at the Ghana Capital Market Conference 2023, hosted in Accra on Thursday, November 30, 2023, Mr. Ofori-Atta said the strategic plan which will be implemented between 2023 and 2028, would serve as a blueprint for attaining SEC’s aim of significantly growing Ghana’s capital market.

"If you look at the influence of capital markets, Japan is about 120% of GDP, and the United States is about 190% of GDP. So, this strategic plan is leading us to all be part of the securities market, which is important because it brings liquidity and flexibility to do transactions that are required. So, I am very excited about that," the Minister told the press following the launch of the strategic plan.

While congratulating SEC on their anniversary, the finance minister lauded the commission for the continuous delivery on its mandate and the role it has played in Ghana’s capital market.

He congratulated the management of SEC for overseeing a thriving outfit and charged the commission to further pursue growth that instills confidence in the country’s capital market.

On his part, the Director-General of SEC, Reverend Daniel Ogbarmey Tetteh, while acknowledging the efforts of his forebearers at the commission, highlighted some significant milestones achieved over the years.

“As we reflect on this remarkable 25-year journey, it is with profound gratification that we acknowledge the many milestones chalked up by the SEC thus far. Born from a vision to fortify Ghana's capital market, from setting up the governance structures of the Capital Market regulator; establishing a regulatory framework that is compliant with the international benchmark set out by the International Organization of Securities Commissions (IOSCO), SEC Ghana is currently a Signatory A member of IOSCO. The SEC continues to embark on a path dedicated to transparency, safeguarding investors' interests, and nurturing a resilient financial ecosystem,” he noted.

On the way forward for the commission, the director-general said SEC, in addition to existing guidelines, will continue to issue new guidelines that will ensure the diversification of Ghana’s capital market.

“In the spirit of ensuring a more robust and resilient capital market, the SEC is poised to churn out a series of new guidelines that support the deepening and diversification of the market. The forthcoming Guidelines on Crowdfunding, Green bonds, Financial Resources, Market Making, Margin Trading, Securities Lending, Borrowing, and Asset-Backed Securities will contribute to strengthening the market's resilience. These regulatory initiatives showcase the SEC's dedication to cultivating a dynamic and responsive capital market, capable of thriving in the face of evolving financial landscapes.

“Additionally, our commitment to financial education, highlighted by comprehensive campaigns and regional educational programs, aims to empower individuals with crucial financial knowledge. We have also introduced Continuous Professional Development programs for market operators, and we expect that to help maintain quality practitioners in the industry,” he noted.

The Board Chairman of SEC, Dr. Yeboa Amoa, in his welcome address, said the Commission's evolution over the years has led to an overall elevation of the quality of standards and regulation in the capital market.

Inspired by the theme for the Ghana Capital Market Conference 2023, Dr. Amoa emphasized the need for collaborative efforts in growing the capital market as a cornerstone of the economy.

"To my mind, everyone who is here present has a sense of an appreciation of the pivotal role capital markets hold in the mobilization of long-term capital in the financing mix of any economy, so there is no need to preach to the choir here. The primary emphasis of this conference, and appropriately so, centers around the collaborative efforts required to construct a more resilient financial system. The concept of ‘resilience’ in the context of financial systems calls for closer analysis, as most of the current efforts to reshape financial systems seek to render them more resilient. Resilience has become a necessary complement to the paradigm shift taking place in global financial regulation toward ‘macroprudential’ regulation,” he stated.

Held under the theme: "Deepening and Diversifying Ghana’s Capital Market Towards a More Resilient Financial System,” the Ghana Capital Market Conference 2023 (GhaCMAC 2023) brought together significant stakeholders from the industry, including policymakers, investors, and research analysts whose experiences and knowledge came to bear by delving into future prospects of Ghana’s capital market.

Through sessions of panel discussions, the event highlighted the opportunities arising in Ghana’s capital market as well as challenges within the market that need to be addressed.

GA