SMEs urged to leverage on the Ghana Stock Exchange

The Managing Director of Intravenous Infusions PLC, Moukthar Soalihu, has urged small and medium enterprises (SMEs) and indigenous companies to capitalise on the Ghana Stock Exchange (GSE) as a strategic avenue to secure affordable capital for business growth.

He emphasisied the role of GSE in providing platforms for businesses to raise cheap or low-cost capital compared to the money received from banks at a high interest rate.

Speaking at the programme organised by GSE dubbed ‘Facts behind the Figures’, he indicated that no medium for accessing money comes at a free cost, including the alternative market – but “it is worth sourcing money from the Ghana Alternative Market (GAX) because it is not as expensive as what you will get from the banks”.

“Securing funds from banks often requires interest rates of not less than 30 percent. What GSE will do for you as an SME is create a platform for you to raise capital that is less expensive. Every money has a cost. You cannot say because it is equity it does not have a cost; but it’s significantly cheaper compared to our banks which give monies at very high interest rates,” he advised.

In addition to accessing affordable capital, he also outlined pre-financing opportunities and enhanced business transparency as benefits they considered in opting for the alternative market.

“GSE also helps the company to become transparent. When you go through the process, you will be asked to have a functioning board and put in institutions for accountability…..doing all these will help you manage your business,” he said.

Presenting the company’s financial performance, General Manager-Finance and Administration, IIPLC, Rev. Dr. Eugenia Bulley, mentioned that the company produced a strong performance in the year 2023 despite the prevailing macro-economic challenges – attributing it to the board’s proactive approach and new strategies they implemented.

Looking into the future, she stated the indigenous pharmaceutical company intends to grow revenue by 20 percent and focus on export market opportunities to widen its West African market presence.

For her part, Managing Director-GSE Abena Amoah emphasisied the importance of directing procurement preferences toward companies listed on the GSE, such as Intravenous Infusions PLC.

She reiterated GSE’s commitment to collaborating with investors and policymakers for sustainable policies that ensure business growth and success.