SEC boss challenges SMEs to join GAX

The Director General of the Securities and Exchange Commission, Dr Adu Anane Antwi has encouraged up and coming small medium enterprises(SMEs) to join the Ghana Alternative Exchange(GAX), otherwise known as the SME market.

"It is not the best to be holding on your company as 100% owner, you need capital. It is important for others to come in" he said.

The Ghana Stock Exchange(GSE) last year set up a GH¢1million revolving fund to support the listing expenses of SMEs on the GAX.

The newest addition to GAX is Samba foods, who enlisted with a share of 0.72%. The CEO of Samba foods, Leticia Osafo Addo maintains that it was her desire to expand her business and operations through the capital market.

The concept of the alternative market is to address complaints by SMEs about the stringent criteria which makes it impossible to use the main stock market to raise equity for their businesses.

Last year, the GSE targeted SMEs with a minimum stated capital of GH¢250,000 which have been in operation for at least a year. It also considered companies that have the potential to be profitable.