The Ghana Stock Exchange (GSE) has signed and exchanged a Memorandum of Understanding (MOU) with the London Stock Exchange Group (LSEG) to strengthen their common interest in collaborating to support the development of the capital market in Ghana.
As part of this MOU, LSEG will assist the GSE to take steps to move from a frontier market to an emerging market, support cross-listing between the LSE and GSE and raise awareness of capital raising opportunities.
The two institutions will establish a centralised corporate news dissemination platform in Ghana to promote efficient disclosure practices and price formation and also to support future public market fundraising for the Ghana Infrastructure Investment Fund (GIIF).
According to a statement from the Ghana Stock Exchange, it states that both institutions had the desire to assist Ghanaian businesses to raise capital and support business growth both domestically and internationally.
As part of the MOU, the GSE and the Securities & Exchange Commission (SEC) would sign a commercial contract with the LSEG Academy to provide series of capacity building programmes to supports product development and market diversity in Ghana.
These capacity-building programmes are designed to support aspects of Ghana’s Capital Market Plan, which focused on building key competencies to develop a green, social and sustainable bond market.
Commenting on the development, Mr. Ekow Afedzie, Managing Director of GSE, said, “This is a very historic moment as the GSE today will sign an MOU with the largest stock market in the world. It is also significant because, after 30 years of operating as a stock market in Ghana, the GSE will be working to join the league of emerging markets thereby promoting market confidence and attracting global investors.”
He added further that the GSE was committed to promoting the government of Ghana’s transformational agenda of making Ghana a regional financial hub and positioning it as an International Financial Service Centre.
Also commenting, Rev Daniel Ogbarmey Tetteh, Director General of the SEC, noted that: “‘I wish to put on record that the Securities and Exchange Commission – Ghana is particularly delighted on the occasion of the signing of this MOU between the London Stock Exchange and the Ghana Stock Exchange.
The timing is opportune as we have recently completed our 10-year Capital Market Master Plan and are about to commence the implementation. A key outcome of this partnership between LSE and GSE is for Ghana to progress into the ranks of emerging markets and we are happy to note that a lot of the initiatives that have been identified under the partnership will complement the four pillars under our Capital Market Master Plan.’
It is worth mentioning that, President Akufo-Addo was present to witness the signing and other high ranking government officials present included; the Minister of Finance, Ken Ofori-Atta, Ghana High Commissioner to UK, Papa Owusu Ankomah, UK Minister for Africa, Mr. Andrew Stephenson MP, Dr. Ernest Addison, Governor of BOG, Mr. Anselm Ray Sowah, MD, GCB Bank Ltd and Council Member of the Ghana Stock Exchange, Rev. Daniel Ogbarmey Tetteh, Director General of SEC, other Ministers of State and officials from GSE, SEC and GIIF.