As part of efforts to deepen Ghana’s capital market, the Governor of the Bank of Ghana is taking deliberate steps to inject new life into the country’s market by encouraging more banks to list on the Ghana Stock Exchange (GSE).
The move, according to Governor Dr. Johnson Asiama, is part of an agenda to deepen the financial sector, improve access to long-term capital, and give Ghanaians more opportunities to invest in the country’s growth story.
Speaking at the ongoing World Bank/IMF Annual Meetings in the United States, Dr. Asiama revealed that the central bank has begun discussions with bank leaders to make public listing a more attractive and accessible option.
For him, it is unacceptable that out of the 23 commercial banks in the country, only about six of them are listed on the Ghana Stock Exchange.
He explained that increasing the number of banks listed on the GSE would not only boost transparency and corporate governance but also strengthen the market by providing “patient capital”, the kind of long-term financing that supports sustainable economic growth.
To put this agenda in motion, Dr. Asiama announced that a committee has been established and a programme has been established in this regard.
“One other interest that we are promoting is to help put life back into the capital markets. It suffered a great deal. And so we are beginning to see some activity, especially in the corporate bonds market. Last week, I had a meeting with the CEOs of all the banks. And you know, out of 23 banks, we have barely just about five or six that are listed on the Ghana Stock Exchange. But we have agreed on a programme, and we set up a small committee to get more and more of the banks listed on the Ghana Stock Exchange,” he recounted.
He added, “That way, it’s a win-win. We would have greater amounts of long-term, you know, capital, what they call patient capital. And then at the same time, we’ll be putting some life back, you know, into the equities on the Ghana Stock Exchange.”
Listing on the stock exchange allows banks to raise equity financing instead of relying heavily on deposits or short-term borrowing. This, in turn, enhances their ability to lend more to businesses and households, helping fuel private sector expansion.
The Governor’s initiative could also open up new investment avenues. More listed banks mean more shares available for individuals, pension funds, and institutional investors to buy, effectively giving citizens a stake in the success of Ghana’s financial sector.
This move could be the turning point the GSE needs after years of not very vibrant activity, should it be well-implemented.
