Dr. Adu A Antwi
Dr. Adu A Antwi

The Director General of the Securities and Stock Exchange Commission Dr. Adu A Antwi, has averred that to further improve listings on the Ghana Stock Exchange there is a need for the country to have a policy.
According to him, this policy will require companies operating in specified sectors of the economy to float part of their shares on the GSE after five years of operations.

Dr. Adu A Antwi
Dr. Adu A Antwi
This he said, sectors such as: banking, Insurance, mining, Telecommunications, Oil and Gas and others. This he said, can be made part of the licensing requirements for such companies to operate.

Mr. Antwi made this remark during the Listing ceremony of Meridian Marshalls Holding Company Limited in Accra.

He explained further that, the policy will ensure that foreign companies do not transfer all dividends declared outside the country, but pay part in cedis to local investors. Indicating that it will reduce the demand for, and pressure on cedis to improve the strength the currency.

More so he noted that, Small and Medium Enterprises (SME) sector contributes significantly to the Gross Domestic Product (GDP) in the country. Yet, the SMEs are facing numerous challenges when it comes to access to finance.
“The 2013 Banking Survey Report prepared by PWC indicated that, about 90% of companies registered in the country are SMEs and the sector contributed about 49% of Ghana’s GDP in 2012. According to research, SME’s have been noted to provide about 85% of manufacturing employment in Ghana”‘.

He said, it is in this regard, the Ghana Alternative Exchange (GAX) was created to provide a platform for SMEs to access long term capital at relatively lower cost.

Adding that, companies which list on the GAX enjoy other benefits like mandatory underwriting of the minimum offer by the sponsor and access to the GAX- SME Listing support Fund is a revolving fund to support the cost of raising capital and deferment of up-front fees.

He noted they do not pay fees for approval of their offer documents by the Securities and Exchange Commission (SEC).

The director General, stressed that in order to enhance investment variety in the capital market and create a competitive and liquid market, there is a need to work towards expanding the investment vehicles in the country by creating more financial products on the market, including those using mobile technology.

He said, SEC is committed to working with market operators to develop news products. “Currently the SEC is working to introduce Real Estate Investment Funds which will link the capital market to the real estate sector by providing the sector with long-term funds to increase housing delivery in the country.
According to him, Government intends to work on Municipal Finance Bill and get it passed into law to enable municipal authorities raise funds from the market.
This will enable well-resourced municipalities like Accra, Tema, Kumasi, Takoradi and Metropolitan Assemblies to issue municipal bonds to raise capital finance to their income generating projects.

By: Isaac Kofi Dzokpo/ NewsGhana.com.gh

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