The Managing Director (MD) of Ghana Stock Exchange (GSE), Abena Amoah, has called for policies to enhance and strengthen capital market roles in the country’s economic development

According to her, the capital market plays a critical role in driving development – which can be further enhanced with the right policies, particularly those aimed at boosting capital formation.

She spoke at the 2024 Ghana Economic Forum (GEF) under the topic ‘Re-engineering Ghana’s Economic Model for Sustainable Development: A Robust Financial Sector, Political Leadership & National Development Plan is Key’, where she explained that the country needs policies that facilitate the mobilisation of domestic savings and investments.

“We are focused on wealth creation – ensuring that individuals in Ghana can earn a fair salary, live comfortably and have the ability to save,” she said.

Ms. Amoah added that channeling these domestic savings into well-run businesses and the stock market can create employment and healthy returns which can be reinvested.

Ms. Amoah pointed out that past development plans have often overlooked the capital market sector’s involvement. She challenged policymakers to consider how they can leverage the stock exchange, insurance companies, banks and other financial institutions to support economic transformation.

To position the financial and investment sector as a leader in transforming the economy sustainably and resiliently, Ms. Amoah advocated coherent policies that create an enabling environment for businesses to raise capital and so investors can participate in the market.

She emphasised the need for incentives that encourage companies to list on the Ghana Stock Exchange – and called for measures to promote growth in insurance sector and private pension funds.

“Policy comes first, along with education and all the work we are doing at the Ghana Stock Exchange to empower Ghanaians. However, if a policy isn’t supported and the cedi is depreciating, companies will struggle to raise capital in the market; especially when government is offering nearly 30 percent on Treasury bills,” she said.

Ms. Amoah expressed concern over recent data from the Ghana Statistical Service, which indicates that economic growth has stagnated. She noted this lack of growth is impacting the economy as a whole, affecting both individuals and businesses.

She also called for a clearer definition of the country’s priorities, specifically whether trade or industry should take precedence.

“We have a Ministry of Trade and Industry, and we need to decide whether we will focus more on trade or production. These two paths have different priorities. If we focus on trade, we could become a key route under the AfCFTA, with ships and airplanes bringing goods here, which would require developing supporting infrastructure. On the other hand, if our focus is on industry, we would take a different approach, which would inform our investment decisions,” she said.

GEF, an annual flagship event of the B&FT, brings together experts, policymakers and industry leaders to chart a new course for Ghana’s economic future.