Ekow Afedzie, the Managing Director (MD) of the Ghana Stock Exchange (GSE), has disclosed that the local bourse will establish two more new markets to increase trade and expand services and products on the Accra bourse.

The two markets namely: Green and Derivatives, are to be established within five years which will bring the total to five markets on the Accra bourse. Meanwhile, the market currently boasts of three markets including: the Equity Market, Bond Market and Ghana Alternative Market.

The Managing Director (MD) made this known during an interaction with the media in Accra. The interaction was aimed at briefing reporters on the performance of the GSE for 2021 and the outlook in 2022 . He noted that the move is to diversify the markets on the GSE.

Mr Afedzie explained that the Green Bond is expected to be established before the end of this year, 2022. He indicated that the rules for the Green Bond are being developed. According to him, the Green Market will provide funding for projects that protect the environment.

The Derivative Market

Mr Afedzie moreover, noted that the Derivate Market is expected to be established in 2023.

“Derivatives Market is a technical area and experts are being engaged to develop the rules for the market”.
Ekow Afedzie

The Managing Director asserted that as part of the new strategic plan for the Accra bourse, the GSE is working to move from a frontier market to an emerging market which will be recognised as the preferred entry port market into the West African Exchange market.

“Our strategic plan from now to 2023 is to become a demutualised entity operating at optimal capacity with an innovative and competitive orientations.”
Ekow Afedzie

Mr Afedzie averred that the demutualisation would help the GSE to transit from a company limited by guarantee to a company limited by shares.

According to him, Nigeria and Tanzania have demutualised their markets and thus, could list shares on their stock exchanges.

Mr Afedzie further assured that the GSE is working to improve the total market capitalization of the Accra bourse, which is currently 15 per cent of GDP and expected to reach 30 per cent within the next five years.

Total market capitalisation of the GSE as of the end of 2021 stood at GH¢64,495.20 million.

The Managing Director recalled that the GSE last year, was adjudged the second best performing market in Africa. He therefore, promised to take the local bourse to new heights in Africa.

GSE to Engage NPRA

Mr Afedzie indicated that the GSE would engage with the National Pensions Regulatory Authority (NPRA) for more pensions funds listed on the Accra bourse to provide long term capital to businesses to expand their operations. He added that the GSE is working to improve equity listings from 39 to 64 within five years, as well as improve corporate bond issues from 11 to 36.

The Managing Director iterated that the objective of GSE is to become the preferred investment platform in the country and improve equity listing and bond issuers on the bourse.

“Our mission is to provide an efficient securities market for national economic development through access to capital and investment, and the vision of the GSE is to be a world recognised securities market relevant to the Ghanaian economy.”
Ekow Afedzie