 The
Growth of a Promising Stock Market
The growth of the financial sector has benefited the vibrant Ghana Stock Market as three of them, Ghana Commercial Bank, Standard Chartered and SSB Bank have been listed on the Ghana Stock Exchange (GSE) .
The GSE is currently bubbling with activities with 21 equities and three corporate bonds listed, and a total of market capitalization of 1,384 million dollars as at the end of 1998. Since its inception the GSE has been able to mobilize 126.62 million dollars long-term capital in the primary market.
In terms of performance, the GSE has been described as one of the most successful stock markets in the world. Mr. Yeboa Amoa , Managing Director of the GSE attributes this to a combination of measures including the ERP, the law reform and the performance of the economy in creating the environment to attract investment capital which has enabled quality companies like Unilever, Mobil, Standard Chartered Bank and others to raise the profile of the GSE on the international market.
Mr. Ken Ofori-Atta , Executive Chairman of Databank , a very active investment bank on the Stock Market believes that Ghana’s financial industry has the unique opportunity to take the leadership mantel with regards to the financial services in the West African sub-region. He believes however that the government will have to take certain steps including opening restrictions, off-shore banking and financial transactions. "All of those would be critical to people feeling that Ghana is the destination because in the sub-region we have a sense of trust, hospitality and safe haven. We speak English which is critical in financial services, so if we can combine that with aggressive liberalization and promotion, I suspect that in 5 to 10 years Ghana would be the destination and gateway to West Africa."
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Currently, GSE has embarked on a strategic plan to enter into agreements with the Johannesburg and Nigerian Stock Exchanges to create a big African market, but Yeboa Amoa says talks are going about the creation of a West African Stock Market, a market that will eventually merge all the stock markets of both the English and French to fulfil the demand of an African Economic Union by 2034.
The benefit of the buoyant financial industry is that it has attracted several institutions, made up of three discount houses, five leasing companies, one venture capital, two mortgage financing and 13 brokerage houses |
GHANA
