The Bank of Ghana (BoG) is calling for a policy which will compel telecom operators in the country to list on the Ghana Stock Exchange (GSE).
First Deputy Governor of the BoG Millison Narh believes this will help address and reduce forex market pressures in the country.
The World Bank last year expressed worry over the 80% hold of the Ghana Stock Exchange by a few companies saying the development has suppressed competition in the sector.
Speaking during a panel discussion as part of the 10 year anniversary celebration of the central Securities Depository, First Deputy Governor of the Bank of Ghana Millison Narh said the listing of Telcos on the Ghana Stock Exchange will reduce the frequent transfers of profits outside the country.
“From the supply side we see that a lot still remains to be done, because if we want to gain traction there is the need for all the blue chip companies that are operating in the country to join the exchange to be enlisted.”
The first deputy governor asked that regulators use the licensing methodology to get the Telco’s to secure the ownership of securities in the domestic markets which would see to it that huge profits are not sent out of the country, which end up putting pressure on the forex market in the country.
“Looking at the forex market pressures that we currently facing, one of the ways of addressing these pressures would be to gradually persuade these telcos to enlist on the exchange so that we can reduce the frequent transfers of profit from the country.”
By: Norvan Acquah – Hayford/citifmonline.com/Ghana