Managing Director of Ghana Stock Exchange (GSE), Ekow Afedzie, has disclosed that the withdrawal of taxes on capital gains of listed securities is necessary to the growth of the capital market.
Mr Afedzie lauded government for the initiative by stating that the reversal will be attractive to investors on the country’s local bourse.
Speaking at the listing of Pesewa One Plc. on the Ghana Alternative Market, Mr. Afedzie also expressed his chagrin on the performance of the market. He, however, proffered ways of revamping the market.
“We applaud the government of Ghana for this initiative. The reason this is important for us is that the stock market is a secondary market where people buy and sell. Now when people make gains from their transactions, they won’t be taxed which should make the bourse more attractive. To develop our country, we need equity capital; patient capital to enable companies to grow and expand, so they can employ more people and further grow the country.
“We’ll be looking at the underwriting policy again. We’ll be introducing incubation programs to groom and nurture companies to be able to list on the market and raise money. Because the essence of GAX is to enable companies to raise long-term capital. In all, we want to make GAX attractive to investors and potential issuers who will use this market.”Ekow Afedzie
Businesses urged to take advantage of local bourse
Deputy Managing Director of the GSE, Abena Amoah, also hinted that the establishment of the listing support fund is to attract small businesses to list on the market.
According to her, this comes without any financial hindrance and further encouraged entrepreneurs to make use of the fund and list on the market.
Additionally, Ms. Amoah also urged SMEs to access its support opportunities available to aid their listings on the market.
Businesses who take advantage of the Ghana Stock Exchange listings stand to benefit from funds to boost their operations.
Ms. Amoah also disclosed that the exchange will give Pesewa One equity capital to grow its business. Also, she indicated it will enhance its corporate governance.
Pesewa One’s take on local bourse
On his part, the Chief Executive of Pesewa One, Dr. Prince Abbey, revealed that the move will serve as inspiration to other SMEs to consider the GAX market.
“Our main goal is to inspire other entrepreneurs. And let them know that micro and small businesses can grow in Ghana and become international giant.
“We have not listed by IPO but we hope to come back to raise some funds in the medium term although our main focus now is to encourage others [businesses] and improve the corporate governance of the company”.
The listing of Pesewa One PLc by the GSE forms part of efforts by the GSE to revamp the alternative market. It becomes the first company to be listed on GSE on the alternative market for 2021 inspite of the pandemic.