The Minerals Income and Investment Fund (MIIF) has disclosed that plans are far advance to list Electrochem Ghana Ltd on the Ghana Stock Exchange (GSE) before the end of this year.

The Ada Songhor Salt operated by Electrochem is a 41,000-acre salt bank compared to what is in Namibia, which is 16,700 acres, that is the largest salt bank in Sub Saharan Africa.

Edward Koranteng, the Chief Executive Officer (CEO) of MIIF, while speaking at the Ghana Mining Expo in Takoradi, noted that investing in the project is strategic and could rake in a billion-dollar revenue.

“We have done our research and we intend to look at salt as one of the alternative minerals that has huge potential for Ghana. We are working right now with Electrochem, going through quite a series of analysis, working with the likes of Ernest and Young, Ghana Stock Exchange and working on the valuation with the intention of up to US$30 million in the project.

“However, there are other aspect of the lithium project we are looking at. We are looking at the value chain and we are looking at how we support the development of ceramic development plan of Ghana. we are looking at investing the entire value chain, we are working on investing in a processing plant that is going to feed the lithium project.”
Edward Koranteng

The Project to Fetch A Good Amount of Revenue

Edward Koranteng iterated that this is a huge invest project that will fetch a good amount of revenue. As such, he rallied investors to invest in the project when it is finally listed on the Ghana Stock Exchange. He also noted that some investors already came on board to invest in the project.

“The promoters and its bankers have invested US$60 million already and as we speak, that project has the biggest salt loading area on the entire continent, at a 50% usage, we are looking at about a billion dollar in revenue; we are also working with the Ghana Stock Exchange in listing this investment on the Ghana Stock Exchange before end of 2023.”
Edward Koranteng

The Ghana Stock Exchange is the principal stock exchange of the country located in the capital Accra. Through its automated trading system, the GSE opens for continuous trading every working day. Settlement of trades, handled by Bank of Ghana’s Central Securities Depositary, is done on a T+3 basis (business days).

Backed by the SEC, the regulatory body for the securities market in the country, the GSE has various investor protection provisions such as rules against insider trading as well as a fidelity fund to compensate investors for losses incurred as a result of malpractice by a licensed dealing member of the bourse.

In January 2011, the GSE began publishing two indices, namely, the GSE Composite Index (GSE-CI) and the GSE Financial Stocks Index (GSE-FSI). The GSE-CI is a market capitalization weighted index comprising all listed ordinary shares with the exception of those of listed companies that have shares listed on other markets.

Calculation of the index is based on the volume-weighted average closing price of the constituent stocks. The GSE-FSI is exactly like the GSE-CI but has as its constituent stocks from the financial sector, including those in the banking and insurance industries. The GSE-CI is regarded as the benchmark index of the Ghana stock market.

Given that the dozens of companies are listed on the Ghana Stock Exchange to raise capital for their operations, Electrochem’s listing on the local bourse will help the company to raise more capital for its operations.