Rev. Daniel Ogbarmey Tetteh, the Director-General of the Securities and Exchange Commission, has averred that 2021 has been a very productive year for securities operators due to a number of activities carried out during the year.

Rev. Tetteh expressed gratitude to God for allowing them to make it through the covid-19-induced year. He insisted that the year’s positives much exceed the negatives, and that market participants should be grateful.

“2021 has no doubt been an eventful year. But we have come this far in the year by the Grace of God. In spite of the many challenges this year has brought us, I can still count a number of positive developments, including a rebound in the performance of the Ghana Stock Exchange, all-time high traded values of the Ghana Fixed income market and a significant progress in the consolidation of the asset management clean-up. And of course, the icing on the cake, the launch of the ten-year capital market master plan.”
Rev. Daniel Ogbarmey Tetteh

The Director-General was also bullish about the possibilities for the coming year, promising that 2022 would be the year when the capital market master plan would be fully implemented.

“I am convinced that the coming year will bring a lot of positive developments especially as we get into the implementation of the capital market master plan.”
Rev. Daniel Ogbarmey Tetteh

The Capital Market Master Plan

The Securities and Exchange Commission (SEC) released its first Capital Market Master Plan (CMMP), which will serve as a plan for the capital market’s development in Ghana over the next ten years.

The Plan is based on a vision that was discussed and agreed upon with relevant parties in the capital market to ensure that the industry has a bright future. The capital market in Ghana is expected to be manifestly robust and well-functioning by the conclusion of the plan period.

The Minister of Finance, Mr. Ken Ofori-Atta, who debuted the Plan, said that the Capital Market was an important catalyst for growth and development, but that the evolution of the country’s financial sector had not vigorously placed the vital industry at the center of the financial sector development over the decade.

Ghana’s capital market, according to the finance minister, is frequently regarded as one with multiple chances for expansion, owing to the supremacy of plain vanilla and traditional securities in the area.

“Through the strengthening of the private fund machinery, SMEs and new entrepreneurs will have access to funds to support their growth agenda and ultimately reduce the level of unemployment in the country.”
Mr. Ken Ofori-Atta

Mr. Ofori-Atta indicated that the Plan’s goal was to increase stock market capitalization to GDP from around 15% to 50% by the end of the 10-year term, as well as increase equity market turnover to market capitalization from about 1% to 15%.

The Minister further posited that liquidity turnover (nominal value of outstanding securities) in the fixed income market is planned to rise from 42 percent to 70 percent under the plan.

“In addition to improving the breadth of the market, the plan has a target to increase asset under management in collective investment schemes from about GH¢3billion to about GH¢38 billion and those under managed account from GH¢19 billion to about GH¢28 billion.”
Mr. Ken Ofori-Atta