Financial sector experts have raised fresh concerns over the persistent stagnation of Ghana’s capital market, warning that activity has remained largely flat since MTN Ghana’s landmark Initial Public Offering (IPO) in 2018, the last major listing to hit the market.
The concerns were shared at a capital market forum hosted at the World Bank office in Accra, where representatives from the Ghana Securities Industry Association and the Securities and Exchange Commission (SEC) analysed the deep-rooted challenges undermining market growth.
The event also featured a presentation on the role of capital markets in lower middle-income countries and their potential to stimulate long-term investment.
According to the experts, Ghana’s capital market has failed to keep pace with the broader economy, with market capitalisation as a share of GDP consistently trailing behind peer countries in sub-Saharan Africa.
They noted that the absence of new listings and limited product diversity continue to undermine the depth and vibrancy of the market.
Ms. Eugenia Basheer of the Ghana Securities Industry Association described the Ghana Stock Exchange as “largely flat” over the past several years, attributing the trend to a combination of unfavourable macroeconomic conditions and weak investor confidence.
She explained that in recent years, high-yielding government securities especially Treasury bills offering returns of up to 32 percent have diverted investor interest away from equities.
“When investors can earn such high returns on virtually risk-free instruments, the incentive to take on equity risk drops significantly,” she said.
Ms. Basheer also pointed to regulatory bottlenecks as a major barrier to market development.
She highlighted a period during which the SEC operated for nearly a year without a board due to gaps in board tenure linked to election transitions, a delay she said stalled approvals and derailed potential listings.
“A regulator cannot function effectively without a board. Losing an entire year during a transition is a killer for the capital market,” she warned.
Responding to these concerns, Dr. James Klutse Avedzi, Acting Director-General of the SEC, assured stakeholders that the forthcoming Securities and Industry Bill would correct such structural weaknesses.
He said the new legislation, expected to be passed by mid-2026, includes provisions that allow board members to overlap their terms during political transitions, ensuring continuity and preventing regulatory paralysis.
Dr. Avedzi expressed confidence that the bill would support efforts to rebuild market confidence, strengthen governance, and create a more stable environment for future listings.
Stakeholders at the forum agreed that revitalising Ghana’s dormant capital market will require a combination of macroeconomic stability, regulatory reforms, stronger investor protection and deliberate efforts to encourage private sector participation.
