Ghana Securities and Capital Market

A Broad-ranging Outlook on Ghana Securities and Capital Market

According to a new research, the GDP for Ghana is expected to reach a significant growth rate of 7.5% by 2018, showing a steady growth attracting investors. Despite the bad debt levels, the GDP manifested a steady growth of 3.9% at the end of 2015 as Ghana’s market attracted a lot of investors. Ghana has boomingly become the third-largest growing economy in Africa and exhibited profound economic growth. With the course of time, the Government of Ghana has taken various strategic initiatives to broaden the horizons for international investors entering the market. The country’s proclivity for becoming a security-oriented market has been justified with the latest developments in Ghana. Ghana’s capital market is gradually developing and increasingly beginning to play pivotal role and helping to attract long-term capital for financing economic activities.

The vitality of capital market holds potential for notable contributions to Ghana’s robust, sustained economic expansion in consonance with national development. To bolster link between capital market and agricultural sector, Ghana has launched a commodities exchange. to revolutionize Ghana’s Agriculture through the establishment of the first modern commodity exchange in the country and also to create orderly, transparent and ready market for goods that are produced by farmers, as well as improve agricultural produce, in addition to help generate more opportunities for investment in the Ghanaian economy. It will also give a positive result with reduction in post-harvest losses through price stability, improvement in commodity price risk and credit risk management, provision of a transparent and competitive price discovery mechanism, reduction in transaction and marketing costs, and avoidance of making the mistakes of others. The Government of Ghana plans to rationalize the capital market and move towards their integration in order to infuse increased liquidity in the economy.

An other option for local farmers remains Ghana Alternative Exchange (GAX) targeting on both start-up companies and existing SMEs. The burgeoning number of listings on Ghana Alternative Exchange (GAX) and the implementation of an electronic bond market will add new dimensions to the Ghana Securities and Capital Market.

The Investment Climate of Ghana Financial Market has been affected by the taxes and laws recently accredited to Securities and Exchange Commission Ghana, with Capital Gain Tax diverging investors and Security Industry Bill enabling SEC attracting its own investments while engaging with other exchanges across the world. Adaptation of new Securities Law will be yet another strategic move towards flexibility of investment funds. The multinational companies that have already initialized to list on the Ghana Securities Exchange for the year 2017 have been benefitted with an ease of buying and selling Ghana government securities matching the global standards. Even though Ghana has struggled to balance its debt levels, the GDP has manifested a steady growth of 3.9% at the end of 2015 that has attracted a lot of private and international investors. Similarly, the World Bank anticipates that the GDP will recover to 5.9% in 2016 and further to 8.2% in 2017, which in return will give rise to number of optimistic opportunities in the Ghana Securities and Capital Market.

In line with these developments, Trade Essential is organizing Ghana Securities and Capital Market Conference, scheduled on 27-28 March in Accra, Ghana. The conference will serve to underline the stability and potential of Ghana’s capital market. The discussion topics will draw attention on themes corresponding with the current status and future outlook of Ghana’s securities and capital markets and will also continue to look towards changing trends in market of Ghana after the significant merger of International Finance Corporation and Ghana Stock Exchange, the benefits of the launch of Ghana Commodities Exchange and the Derivatives market, also highlight the new government enforcement: Capital gain tax, and the amendments made in Security Industry Bill, to assist the investors and financial firms for tapping key opportunities that the market has to offer.

Ghana Securities and Capital Market will further shed light on the initiatives promoting the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected through the proactive implementation of the Securities Laws. With the aim of advancing the growth of Ghanaian Economy, the conference will unfold the various aspects of Investing in Capital Markets solving major social and environmental problems, boosting the agriculture sector, Ghana Alternative Exchange (GAX) targeting growth of both start-up companies and existing SMEs.

The conference will reach out to the professionals from the Banks, Private Equity Firms, Local Regulators, Local and International Investors, Financial Service Providers, Brokers, Stock Market Analysts, Managing Consultants, Chief Investment Officers, Director and Corporate Treasurers, Directors of Banking Institutions, Invest Promotion Managers, Chartered Accountants, Internal Auditors, Securities Dealers and Brokers, Business Consultants, Risk Management Officers, Group Executive Corporate & Investment Banking Heads Asset Managers, and Securities Agent in the sub-region, providing them an ideal platform to network and exchange information about growing opportunities and challenges influencing the development of the Markets with industry leaders from across the region.

The priority is being shifted towards macroeconomic stability and a robust regulatory framework for the growth of stock exchange. To elucidate it further, Isaac Adjin Bonney Founder of Yennob Consulting Group will  share his expertise on Capital Gain Tax: Impacting the Investment Climate of Ghana Financial Market.

Ghana’s bond market challenges faced include unfavourable economic environment, availability of other investment substitutes, the absence of institutional investors, and the lack of credit reference/rating agency. These challenges are to be understood deeply by the investors. The pension and insurance industries with their upcoming laws and policies will in a way promote capital market expansion with more flexibility for investment funds. Drawing attention to the same, Eugene Coal Gbedemah, CEO of Brooks Investment Plus will talk on Analyzing and Overcoming the Challenges Faced by Ghana Bond Market.

Trade among two nations is a potent way to boost international coalition as it helps in building long-lasting partnerships. It also proffers various opportunities for developing countries, as in some nations, official trade routes are off-limit to the public; therefore border-trades facilitates the majority of economic activity. Aiming at the potent capital market integration, Africa welcomed a glorious advent of cross-exchange trading between Ghana and Nigeria Exchanges which was one of the first examples of cross-border trading, where a broker in Ghana was able to buy shares on the Nigerian Stock. Cross Border Trading will exhibit great opportunities for many stakeholders in seeking regional trading blocs and also to construct integrated capital markets. To delve further on the potential of cross border trading, Geoffrey Maison, Research and Investment Banking Analyst at CAL Brokers Limited will give a presentation on Tapping on Cross Border Trading to Access Bigger Pool of Funds.

Africa represents a small percentage of the global investment banking business, but the activity is expected to witness an expansion in the years to come in view of existing economic opportunities. Over the last five years, impact investing has gained strong momentum throughout Africa. Economic growth has taken root across much of the region. In many countries, exports are booming, foreign investment is on the rise and dependence on aid is declining. Encouragingly, ongoing structural changes, such as the emergence of pan-African banking groups and of mobile banking, are beginning to strengthen competition, to deepen African financial markets and to improve access to finance. Transforming the financing environment is the way to unleash Africa’s full potential, for the benefit of all Africans for generations to come. In correspondence with the same, Hon. Dr. Rashid Pelpuo, Member of Parliament, Parliament of Ghana will help us Understanding the Investing Landscape for Financial Players in Africa.

Ghana Securities and Capital Market conference will present a platform to meet, network and receive updates from the eminent industry players with the aim to drive Ghana Securities and Capital Market forward. Also, it will prove to be a milestone in the development of a viable and sustainable market for Ghana.

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