The Securities and Exchange Commission (SEC) of Ghana and the African Development Bank Group (AfDB) today launched a $400,000 project to strengthen the development of Ghana capital markets. This follows the signing of a grant agreement to develop a risk-based supervisory solution for the local capital market.
The grant is from the African Development Bank’s Capital Markets Development Trust Fund. It will finance the provision of technical assistance and capacity building for the SEC, the markets regulator, and the Ghana Stock Exchange (GSE).
Meanwhile, the project will enhance the SEC’s institutional capacity and readiness to transition from a compliance-based to a risk-based supervision approach for the securities market. It will also enable the development and streamlining of policy and regulatory frameworks for pooled funds. Furthermore, it will support the broadening of market instruments through the introduction of products such as asset-backed securities.
At the launch event, Daniel Ogbarmey Tetteh, Director-General of the SEC, commended the AfDB for supporting the development of a risk-based solution. This is expected to bolster the Commission’s capacity to fulfil its mandate.
Project objectives
Moreover, the objectives of the project align with the priorities of the Bank’s Country Strategy for Ghana. The AfDB envisages measures to stimulate capital market development in Ghana. It also aims to unlock financial resources that will advance Ghana’s industrialization, the private sector and infrastructure development.
Furthermore, Mr. Ahmed Attout described the collaboration as timely. According to him, it is a demonstration of the Bank’s commitment to the development of the financial system in Ghana.
“The collaboration with the Securities and Exchange Commission to promote an enabling regulatory and supervisory environment with diversified financial market products and instruments is timely. This support demonstrates the Bank’s desire for a deepened and broadened financial system – a driver of investment and economic growth in Ghana” .
Ahmed Attout, Manager of the Bank’s Capital Markets Development Division
Besides, the project will benefit capital market participants in Ghana, including securities issuers and investors. It will also help broaden available products and structures for savings and investment.
Introduction of new products
Furthermore, Mr. Ekow Afedzie, Managing Director of the GSE, expressed his appreciation to the Bank. He noted that this project has come at an opportune time when the stock market is introducing new products. The aim of the introduction of the new products, according to him, is to deepen the market and improve liquidity.
“Thus, the introduction of the new products will boost investor confidence and achieve the ultimate goal of making the Ghana Stock Exchange a preferred investment destination in the sub-region”.
Afedzie
Additionally, The SEC will cooperate closely with the GSE and other market stakeholders to implement the project. Currently, the GSE is working around the clock to introduce new products into the market.
It can be recalled that on May 13, Mr Afedzie disclosed that his outfit is working to introduced new platforms on the market this year subject to regulatory approvals. This will include Green Bond Market, Over-the-Counter trading and a Derivative Market. Mr. Afedzie believes these new initiatives will help improve listing and whip up interest in the Ghana Stock Exchange.
READ ALSO: Committee will be setup to investigate miners trapped to death- U/E Minister
