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Stock Market / Finance in Ghana

  • Ghana inflation rate falls to 12.6% in May

    GHANA, 2017/06/15 The annual inflation rate fell to 12.6 % in May from the 13.0 % recorded in April, due to general decline in prices for both the food and non-food groups. The rate of inflation is the lowest since December 2013. The monthly change rate for May was 0.7 % compared to the 1.6 % recorded for April.
  • Since trading commenced, returns on the market have been largely positive

    GHANA, 2017/01/14 The restructuring of the financial sector resulted in the creation of the financial market in Ghana. The market is made up of equity, bond, foreign exchange and derivative markets, with the money market dominating the financial markets. EQUITIES MARKET: The Ghana Stock Exchange (GSE) is the result of a private initiative that has been supported by the government. In 1990 the market had 11 securities worth GHS3.1m ($800,000), but presently boasts 40 equities with a total capitalisation of GHS62bn ($16bn). Companies have raised additional than GHS2.1bn ($542m) in equity and GHS194m ($50.1m) in deficit securities as of 2015. There were as well 14 corporate debts valued at GHS97m ($25m) and 98 government notes and bonds valued at GHS11.1bn ($2.9bn). There were two sovereign bonds of $3bn and several listed corporate and government Treasury bills worth GHS18bn ($4.6bn). The GSE is a market for all financial instruments. The market has three segments: the major equity board, the Ghana Alternative Market (GAX) for small and medium-sized enterprises and the Ghana Fixed Gain Market.
  • William Adjovu, Managing Director, Liberty Capital, on the capital market and youth employment

    GHANA, 2017/01/14 A major challenge facing a lot of nations is generating youth employment opportunities. An estimated 80% of unemployed youth are in developing nations and transient economies. In Ghana one out of each four people is 15 to 24 years old, and the country has an average annual increase rate of about 2.5%, according to the 2010 census. The private sector is the major employer in Ghana, accounting for 93.1% of economically active people, with the public sector accounting for only 6.3% of employment.
  • Ghana's capital markets sector to introduce new financial instruments

    GHANA, 2017/01/14 A bill updating the 1993 Securities Industry Law is slowly making its way through the halls of Ghana’s Parliament. The existing law has become out of step with a lot of of the advances of an increasingly world market. The new legislation would seek to tighten regulation, increase transparency, better facilitate cross-border transactions and allow for the introduction of derivatives and alternative investments. REIT: Investment in the country’s growing real estate sector will be one major focus of the new law. The current legislation limits the all mutual fund managers may invest in real estate to 10%. However, according to the National Pensions Regulatory Authority’s pension-scheme guidelines, private pension fund managers are allowed to invest only up to 5% of their funds in a broad investment class that includes real estate investment trusts (REITs), mortgage-backed securities and corporate deficit.
  • Kweku Bedu-Addo, Chairman, Ghana Stock Exchange (GSE), on renewed investment prospects in the equities market

    GHANA, 2017/01/14 Ghana has experienced some formidable macroeconomic challenges since 2013, characterised by high inflation in excess of 20% per annum; a slowdown in real annual GDP increase to below 4%; a sharp rise in the deficit-to-GDP ratio to above 12%; a deficit-to-GDP ratio higher than 60%; a sharp annual depreciation of the Ghanaian cedi in consecutive years; and an extended energy crisis. In addition, the country signed on to a three-year IMF front-loaded extended credit facility in 2014, which involved a front-loaded fiscal adjustment with inevitable adverse consequences on economic increase, given the government’s dominance in the economy. At the onset of 2016 the Ghanaian economy was as well impacted by the significant volatility suffered by emerging markets.
  • Improved fiscal balance to boost Ghana’s economic outlook

    GHANA, 2016/12/25 The IMF has expressed cautious optimism over Ghana’s execution of an extended credit facility (ECF), with fiscal indicators showing signs of development, but has warned that some inflationary concerns remain. According to its most recent statement, published in October, the three-year, $918m ECF transaction – which the government of Ghana finalised with the IMF in April 2015 – has resulted in a slowdown in public spending and a reduction of both the deficit and deficit.
  • Ghana’s expanding capital markets offering

    GHANA, 2016/08/03 Plans to launch a commodities exchange and begin trading derivatives should help strengthen links between Ghana’s capital markets and the agriculture sector, to the benefit of local producers. The country plans to launch the Ghana Commodities Exchange (GCX) in 2017, with its regulatory framework and platform currently in development. The exchange is being developed as a public-private partnership between the Ghanaian government and a consortium of local and international investors, inclunding Ecobank Ghana, the International Finance Corporation and 8 Miles Fund, a London-based private equity fund.
  • Bank of Ghana keeps policy rate unchanged in January

    GHANA, 2016/01/28 At its 25 January monetary policy conference, the Bank of Ghana (BOG) decided to keep its monetary policy rate unchanged at 26.00%. The policy rate presently stands at the highest level on record. The decision met market expectations and follows three consecutive meetings in which the Bank decided to increase the policy rate in an effort to fight high inflation. On the domestic front, the Monetary Policy Committee (MPC) pointed out that challenges in the energy sector along with fiscal consolidation continue to drag on GDP increase. For the initial eleven months of the year, the fiscal deficit was 5.6% of GDP, which was an development compared to the government’s target of 6.8% of GDP. The Bank added that external developments pose a significant risk to the domestic economy. The Committee commented that, “in the medium term, increase conditions are expected to recover, supported by a sustained development in the energy situation, anticipated increased production of oil and gas and a general development in the macroeconomic environment.”
  • London eyes dual listings on west African capital markets

    BENIN, 2015/05/10 Following on from partnerships and dual listings with a number of African capital markets, the London Stock Exchange (LSE) is looking to foster dual listings with the West African regional exchange. “We are looking to attract and encourage dual listings,” Ibukun Adebayo, co-chief of emerging markets at the LSE Group, tells This Is Africa during an event on west African capital markets. “Listing with the LSE provides profile and additional liquidity in nations promoting dual listings.”
  • Can the IMF save Ghana’s currency?

    GHANA, 2015/04/19 A cool $114 million has just found its way into Ghana’s struggling bank balance, courtesy of a new loan package with the International Monetary Fund. It’s not huge money in the grand scheme of things, but alongside the government’s own reforms – and with additional IMF funds on the way – it could be just enough to rescue Ghana’s free-falling cedi and stabilise its wobbly economy.  On Tuesday, the Bank of Ghana’s strained reserves received a boost, to the tune of $114 million, from the International Monetary Fund. It’s a tidy sum designed to shore up the rickety central bank and stabilise Ghana’s currency, the cedi, which has lost nearly 20% of its price against the dollar since the beginning of this year.