Kofi Yamoah, MD, Ghana Stock Exchange
Kofi Yamoah, MD, Ghana Stock Exchange

If prevailing economic environment persists, businesses will perform far better than last year, Kofi Yamoah, Managing Director (MD) of the Ghana Stock Exchange (GSE), has projected.

Kofi Yamoah, MD, Ghana Stock Exchange
Kofi Yamoah, MD, Ghana Stock Exchange
With the expected better performance, Yamoah said the GSE would also do better in 2016 than in the previous year.

Business24

According to him, listed companies have started bouncing back since the beginning of the year, compared with the difficult year they experienced in 2015.

In an interview with the media after an event to throw light on the performance of AFB Financial Services, a listed company, Yamoah said many of the manufacturing firms listed had begun making significant headways since the energy crisis had started stabilizing.

Last year, the exchange saw an 11 percent dip in its performance due to various macro-economic challenges as well as the crippling energy crisis the country was going through.

“Most of our listed companies in the manufacturing sector suffered greatly as a result of the power crisis, while the high interest rates, as well as exchange rate instability, also worked against the businesses, hence the poor performance,” Yamoah explained.

The energy situation has stabilized since the yuletide season in December with over 650 Mega Watts of thermal power coming on stream.

“Most of the listed companies are bouncing back as the energy crisis seems to be behind us, with the exchange rate and interest rates also quite stable,” Yamoah stated.

He therefore urged government to ensure that the relatively conducive macro-economic environment was sustained to ensure that these gains were sustained and deepened.

The MD also urged government to take a second look at some of the measures in the new Income Tax laws that are inimical to the growth of business and the development of the capital market.

On the impressive performance of the AFB Financial Company, Yamoah said it was encouraging and showed that the liquidity situation on the exchange was improving.

Arnold Parker, Managing Director of AFB, noted that, in spite of the difficulties of the past year, there were still very bright spots in the economy as reflected in their loan recovery rate.

According to him, some of their credit facilities targeted at market women and public sector workers recorded above 90 percent recovery.

This, according to him, was due to the trust their clients had for them, adding that even after repayment, they stood the chance of accessing more credit.

“In 2015, the business paid attention to reducing its dollar debts, cutting costs and loan recovery. In 2016 and beyond, the business will be focused on Balance Sheet growth and profitability,” he stated.

Bruce Sneddon , Loans Group Chief Executive Officer, said 2016 promised to be a good year for businesses in Ghana.

According to him, the year started well with the company starting the financial year well ahead of its month-on-month budgets. Enditem.

Source: Xinhua

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