The Managing Director (MD) of Intravenous Infusions PLC, Moukthar Soalihu, has encouraged Small and Medium Enterprises (SMEs) and local companies to take advantage of the Ghana Stock Exchange (GSE) as a strategic resource for securing affordable capital to fuel business expansion.
He cited GSE’s pivotal role in offering businesses access to cheaper or low-cost capital compared to the high-interest loans typically obtained from banks. Speaking at the GSE’s ‘Facts behind the Figures’ event, Soalihu acknowledged that no funding source is without cost, including the Ghana Alternative Market (GAX). However, he noted, “It is worth sourcing money from the Ghana Alternative Market (GAX) because it is not as expensive as what you will get from the banks.”
“Securing funds from banks often requires interest rates of not less than 30 percent. What GSE will do for you as an SME is to create a platform for you to raise less expensive capital. Every money has a cost. You cannot say because it is equity it does not have a cost, but it’s significantly cheaper compared to our banks which give monies at very high interest rates,” he explained.
Soalihu also pointed out additional benefits of the alternative market, such as pre-financing opportunities and improved business transparency, which influenced their decision to choose this route.
“GSE also helps the company to become transparent. When you go through the process, you will be asked to have a functioning board and put in institutions for accountability… doing all these will help you manage your business,” he said.
During the presentation of the company’s financial performance, Rev. Dr. Eugenia Bulley, General Manager of Finance and Administration at IIPLC, reported that the company delivered a strong performance in 2023 despite macroeconomic challenges, crediting this success to the board’s proactive strategies.
Looking ahead, she revealed that the indigenous pharmaceutical company aims to grow revenue by 20 percent and focus on expanding its presence in the West African market through export opportunities.
Abena Amoah, Managing Director of GSE, emphasized the importance of prioritising procurement from companies listed on the GSE, such as Intravenous Infusions PLC. She reiterated the GSE’s commitment to working with investors and policymakers to create sustainable policies that foster business growth and success.
