chambernews

Visit to Ghana Stock Exchange

The Ghana Stock Exchange invited members of the Canada Ghana Chamber of Commerce for a presentation on how companies in the Chamber can enlist and raise capital to expand their businesses.

The 12-member delegation was led by the Executive Secretary of the Chamber Mrs. Edwina Atta-Sonno.

Mrs. Joyce Esi Boakye, (Head of Listing and New Products) welcomed members of the Chamber and introduced her team as follows; Mr. Augustine Simons (Head, Ghana Fixed Income Market), Mr. Jerry Boakye-Danquah (Head, Marketing & Public Relations) and Mr. David Tetteh, a Consultant for the Ghana Stock Exchange.

Mr. Alexander Nortey, President of the Chamber, gave a brief overview of the Chamber’s vision and reiterated his passion for raising capital to support SMEs.

Mr. David Tetteh in his presentation said the Ghana Stock Exchange (GSE) is the principal stock exchange of Ghana which was incorporated in July 1989 with trading commencing in 1990. It currently lists 42 equities (from 37 companies) and 2 bonds. He mentioned that all types of securities can be listed and the criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.

He explained the two categories of listing, namely, the main board and the Ghana Alternative Market (GAX). The GAX, operated as a parallel market since 2015 and is aimed at small and medium-sized enterprises with strong growth potential. Currently, the types of stocks listed on the GSE are common stocks (ordinary shares), preferred stocks (preference shares) of which the Standard Chartered bank is the only enlisted company, and exchange traded funds.

Speaking on raising capital, Mr. Tetteh mentioned that the Ghana Stock Exchange (GSE) allows entrepreneurs and governments to raise long-term capital to drive change nationally and globally through the equity funds, debt funds, collective Investment Scheme and others. He also encouraged companies to invest in the stock market for extra revenue, insure their capital against inflation, and have the opportunity to invest or partner with companies they prefer.

Some participants asked questions on the benefits of Listing on the stock exchange, and High costs of tax by few companies who are compliant and difficulty in acquiring tax clearance certificate from GRA to complete documentation for listing.

Answering the question on listing, Mr. Tetteh mentioned some benefits as gaining credibility/Legitimacy as a company to represent in any African Country, and Gaining growth through accessing long term Capital, Attracting and retaining talents, and Enhancing Liquidity.

Speaking on the issue of high cost of tax deterring companies who are compliant, Mr. Tetteh mentioned that he is well informed that the Association of Ghana Industries are in negotiation with policy makers and GRA to address the issue.

Mrs. Edwina Atta-Sonno, the Executive Secretary of the Chamber, reiterated that five Chambers have petition the Government through their respective High Commissions on behalf of companies in their Chambers on issues of High taxes on few complaint companies and are working fervently to help address this and other related issues to tax.

Mr. Nortey, President of the Chamber, expressed his profound appreciation to the Stock Exchange for a very insightful presentation and urged members to consider listing and raising capital from the exchange to expand their businesses.