-Experts Advocate for Digital Adoption
Ghana’s capital market stands on the verge of transformation through the integration of FinTech solutions, which could make stock market participation more accessible, inclusive, and attractive to a broader demographic, according to Martin Kwame Awagah, President of the Ghana FinTech and Payments Association.
Speaking at the launch of this year’s ‘Ring the Bell for Financial Literacy’ event in Accra, Awagah emphasized the potential of mobile applications, digital wallets, and other innovative financial tools to democratize market access.
Despite Ghana’s evolving FinTech ecosystem, Awagah noted that the capital market remains in its developmental phase, with retail investor participation significantly lower than global averages.
He highlighted that while the Ghana Stock Exchange (GSE) recorded a growth in market capitalization from GH¢64.51 billion in 2022 to GH¢73.89 billion in 2023, retail investor penetration remains below 20%, compared to the global average of over 45%. Awagah stressed the need for technology to bridge this gap and unlock the full potential of the market, especially among youth and underserved communities.
Citing the World Bank’s 2023 Report on Financial Sector Development in Sub-Saharan Africa, Awagah revealed that Ghana’s capital market contributes less than 5% to the country’s GDP, a stark contrast to the global average.
He pointed out that the stock market is often perceived as an exclusive space for the wealthy, further limiting participation.
To address this, Awagah urged for the deployment of technology to reduce entry barriers and introduce innovative financial products to attract a wider range of participants.
Joseph Oko Abumah Lartey, CEO of the Central Securities Depository (GH) LTD, echoed these sentiments, underscoring the critical role of technology in building a more inclusive financial ecosystem.
Lartey stressed that while technology can open doors, financial literacy must accompany these advancements to ensure investors can fully benefit from the opportunities presented by digital tools.
Managing Director of the Ghana Stock Exchange, Abena Amoah, highlighted the strides made in the digital transformation of the GSE, including the launch of its first fully digital Initial Public Offering (IPO), which attracted over 100,000 investors globally.
She described this as a milestone in Ghana’s push for financial inclusion but warned that without increased financial literacy, the impact of such innovations would be limited.
Amoah called on stakeholders including businesses, investors, financial institutions, and regulators to embrace technology as a driving force for growth in Ghana’s capital market.
She emphasized that technology is not merely a tool, but a catalyst for exponential development, capable of creating a more resilient and accessible financial ecosystem.
