The Ghana Stock Exchange (GSE) and Standard Seed Transformation Network (STN) have entered into a partnership aimed at assisting STN to take advantage of the stock market.
This partnership enables STN Ghana to raise capital and investments to support its expansion projects. Also, through the partnership, STN will have access to all the three GSE markets to help them raise capital for its activities. These markets include the Ghana alternative market, the main market and the fix income market.
On the other hand, the partnership presents an opportunity for the GSE to groom and prepare the next pool of companies to be listed on the stock market.
Meanwhile, the Managing Director of the GSE, Mr Ekow Afedzie, highlighted the significance of the partnership during the event.
‘’The purpose of this MOU is to outline the partnership between the GSE and STN Ghana to assist STN’s members to take advantage of the capital raising and investments available on all of the GSE’s markets’’.
Mr. Ekow Afe
Need to take advantage of the partnership
He urged all interested STN members to take advantage of the partnership. He further pledged his support for STN Ghana by helping disseminate all relevant market information to interested members as part of the partnership.
Furthermore, as part of the partnership, the GSE will undertake complimentary market readiness assessment for interested companies in the STN database. GSE and the STN will also have a joint sponsorship of market awareness and sensitization workshops to educate members. This will provide a mechanism for effective control and supervision of trading activities.
Moreover, the President of the Stanford Seed Transformation Network, Mrs Linda Ampah, expressed her excitement over the partnership. She highlighted the long-term prospects and capital gains of the partnership.
“The STN fraternity is excited about this partnership with the Exchange… The Exchange provides a unique platform for our members to be able to raise long-term capital to finance their long-term projects”.
Mrs Linda Ampah
Challenges with long-term financing
Also, she highlighted some of the challenges that businesses having long-term projects face since most available financing options are short-term. Moreover, she lauded the financing options of using equity or debt provided by the GSE. She described it as “very refreshing and attractive for the members”.
“This will save the members from using short-term loans to finance their long-term growth projects, which often results in high financing costs’’.
Mrs Linda Ampah
Furthermore, this partnership will enhance the performance of the GSE in the world. The GSE has made gains of 24.56% on the main market for shares by the start of the year. This strong performance makes it the best performing market in Africa so far this year.
In addition, GSE’ Fixed Income Market has traded GHc90 billion as of May 27, 2021. Since 1990, the average annual returns measured by the composite index is 25%.
Overall, the partnership is expected to stimulate liquidity, giving shareholders the opportunity to realize the value of their investments.
STN Ghana is a network of graduates of the Stanford Seed Transformation Programme, an
initiative of the Stanford Graduate School of Business. The Network seeks to introduce value
enhancing activities for member companies. Its mission is to transition local companies to international players.
