The Ghana Stock Exchange (GSE) has reaffirmed its commitment to enhancing financial literacy and promoting sustainable investing, positioning itself as a pioneer in Ghana’s journey toward green finance.
This vision was made clear by Ms. Abena Amoah, Managing Director of the GSE, at the 2024 ‘Ring the Bell for Financial Literacy’ event in Accra. Her address emphasized the critical role that financial literacy and environmental, social, and governance (ESG) investing play in the development of Ghana’s financial market, underlining the GSE’s ongoing efforts to stay aligned with global trends.
Ms. Amoah’s remarks during the event spotlighted the integral role of financial literacy in empowering individuals to participate in capital markets. According to her, education is essential for ensuring that all Ghanaians can take advantage of the investment opportunities available, especially those related to ESG-friendly assets.
“We cannot fully realize the potential of our digitalized capital market if the public lacks the knowledge or confidence to participate in it,” Ms. Amoah stated. The GSE, therefore, continues to place financial literacy at the core of its mission, understanding that a well-informed populace is the foundation of a healthy capital market.
Since 2022, financial literacy has been central to the GSE’s outreach efforts. In collaboration with key partners like the Central Securities Depository, the Young Investor Network, and the Securities and Exchange Commission (SEC), the GSE has organized over 137 financial literacy programs.
These initiatives have reached more than 65,000 students across schools and tertiary institutions, providing young Ghanaians with the knowledge and tools to navigate financial markets through digital platforms.
This commitment to education reflects a broader understanding that without financial literacy, the vast potential of Ghana’s capital market cannot be fully realized. Ms. Amoah noted that educating the public not only broadens market participation but also fosters a culture of sustainable investing, which is key to future economic growth.
The Ghana Investment Marketplace App
At the event, Ms. Amoah unveiled the GSE’s latest innovation aimed at enhancing market participation: the Ghana Investment Marketplace app. This app, according to Ms. Amoah, will serve as a comprehensive platform that brings together various investment products—from treasury bills to mutual funds, insurance policies, and shares—into one accessible platform.
“It is my dream to see every Ghanaian have access to a comprehensive investment platform right on their mobile phones,” she said. This digital leap not only expands access to investment products but also aligns with the GSE’s broader goal of democratizing financial markets through technology.
The development of the Ghana Investment Marketplace app is a continuation of the GSE’s digital transformation efforts, which began in 2008. The GSE’s adoption of digital tools has been instrumental in increasing participation in the capital market, evidenced by platforms such as Trade Life and MarketWatch, which provide investors with real-time trading updates.
Ms. Amoah also highlighted the significance of the 2018 MTN Ghana Initial Public Offering (IPO), which marked a pivotal moment in the GSE’s digitalization journey. The IPO, the first of its kind to be conducted digitally, allowed investors to subscribe and pay for shares through digital channels, setting the stage for further innovations in Ghana’s financial sector.
Pioneering Green Finance with ESG Investments
The promotion of sustainable investing was another key highlight of the ‘Ring the Bell for Financial Literacy 2024’ event. Ms. Amoah emphasized the GSE’s focus on green finance, driven by the introduction of its Green and Sustainable Bond Market Rules earlier in the year. These rules provide guidelines for the issuance of bonds dedicated to financing environmentally friendly and socially responsible projects.
“Since the launch of our Green Bond Market Rules, we have been actively educating the public on the importance of sustainable investing and the role of green finance in shaping our future.”
Ms. Abena Amoah
The GSE’s commitment to ESG investing aligns with global trends, where there is an increasing appetite for sustainable investment products.
Ms. Amoah cited the example of Hong Kong’s recent issuance of a two-year digital green bond worth $6 billion, which attracted international investors from diverse sectors.
Ghana’s capital market, under the leadership of the GSE, is well-positioned to capitalize on this momentum, with plans to integrate sustainable finance further into the nation’s economy.
By aligning Ghana’s financial market with global ESG trends, the GSE aims to not only boost market participation but also drive broader socio-economic development. Green investments, Ms. Amoah explained, go beyond financial returns, contributing to lasting social and environmental impacts that benefit both present and future generations.
The GSE’s long-standing commitment to digital innovation and financial literacy is clear. Through initiatives such as the Ghana Investment Marketplace app and the promotion of ESG-friendly assets, the GSE is creating a future where all Ghanaians can easily access and participate in the capital market.
As Ms. Amoah concluded, “Financial literacy is the bedrock of a healthy capital market.” With its continued focus on education, technological integration, and sustainable finance, the GSE is laying a solid foundation for a more inclusive, resilient, and forward-looking financial market in Ghana.
