Ghana Stock Exchange calls for deepening of investment culture

The Ghana Stock Exchange is thrilled to partner with the Business & Financial Times for this maiden edition of The Money Summit. This partnership is strategic, as the recovery efforts to put our country on a transformative growth path requires urgent collaboration, following the devastating effects of the Covid-19 pandemic on the Ghanaian and global economy.

Speaking about the investment culture in the country, it is a well-known fact that our culture of ownership needs to change if we want to create the right investment climate to develop our businesses and the country. There is the need to share ownership so that businesses can raise the needed capital to grow and expand. Therefore, the call for a mindset shift towards sharing of ownership that focuses on value and not volume is well placed.

Transparency and accountability in our organizational culture should be embraced by all to promote efficiency and trust in the financial sector.

The Managing Director of the Ghana Stock Exchange, Mr. Ekow Afedzie said, ‘’the GSE’s mission is to provide an efficient securities market for national economic development by providing the platform to access capital and investment.

We have set up 3 markets so far to achieve this– the Main Market, the Ghana Alternative Market (or GAX) and our Fixed Income Market (GFIM).

The GSE’s markets cater for you, whether you seek to raise GHS250,000 or more than GHS1.00 billion; whether you seek new shareholders to give you permanent capital or seek to issue long-term bonds – 3 years, 5 years, 10 years, 20 years and so on; there is a GSE market for you – an SME, a large corporate, Government or a quasi-Government institution. The GSE has indeed facilitated the raising of over GHS16 billion by companies in these markets, and several more billions by the Government of Ghana. The need to ensure the right balance between stock and debt financing options should be considered as critical by organizations,’’he said.

The GSE’s markets provide you with viable investment opportunities whether you have savings of 100 GHS or you manage over GHS 30 billion in assets. We are the best performing market in Africa so far this year, with gains of 24.56% on our Main Market for shares. Since 1990, the average annual returns on the GSE as measured by its composite index, is 25%. We have traded over GHS340 billion in shares and debt securities, and Issuers on our markets have paid out billions in dividends, interest income and taxes.

We believe our nation’s recovery efforts from the COVID-19 pandemic offers us new opportunities to accelerate growth and development for all citizens. The launch of various digital tools by market players to provide more convenience and speed for their customers, is a case in point. It is refreshing to note that GSE’s automated its trading systems back in 2008, making the switch over to automation during this COVID-19 period without much hustle.

And so, we are here to partner with all of you to work and grow our capital markets by running an economy that promotes and rewards the culture of savings. If we widen financial inclusion, through financial literacy outreaches and digitization, those savings will turn into investments. And those investments in turn will be the catalyst that propels business and economic growth and resilience, as well as wealth creation for all.