The Securities and Exchange Commission, SEC, has intensified its call for multinationals operating in the country to list on the Ghana Stock Exchange (GSE).
SEC believes this will benefit the country’s economy as issues bordering on foreign exchange losses will be addressed by this move.
The Commission has been pushing that multinational companies as part of their agreements, be made to list on the GSE in order for the country to benefit from the huge profits and returns accruing to them.
SEC’s renewed calls follows reports that Nigeria’s legislature is to pass a law that will compel multinationals to list a substantial part of their operations on the Nigerian Stock Exchange (NSE).
The Director General of SEC, Dr. Adu Anane Antwi who has been speaking to Citi Business News maintained Nigeria’s decision as timely which should compel Ghana to facilitate processes to embark on a similar drive.
“I think that this is a great thing that Nigeria has done and I have said that one of the challenges that we face even with our currency is the amount of dividends that flows out of the country every year. If we get some of these companies list part of their shares on the Ghana Stock Exchange, at least parts of the foreign exchange that they take every year in terms of dividends will remain here and that should help us manage our foreign exchange value and the rate,” he stated.
Dr. Anane Antwi added, “Nigeria is doing something great and I think that we have to learn from them. This is all that I have been talking about all these years. People said do not use the law but I think that Nigeria has gone the extra mile to use the law to ensure that the local people also benefit.”
Speaking to CNBC Africa on the latest decision, Speaker of Nigeria’s House of Representatives Yakubu Dogara explained that the legislation will help the country deepen the capital market through legislation.
According to him, previous methods adopted in deepening the capital market have been unsuccessful hence the need to revise the strategy.
“We will ensure that at least most of these companies who are making business profits in Nigeria list on the market. The situation where they are cultivating all the margins and making unreasonable profits in Nigeria in that wealth that doesn’t circulate with our citizens has to be discouraged and that is what we will do as a responsible government,” Yakubu Dogara stated.
Capital market to grow with multinationals listing on GSE
The SEC boss further added that there is the need to develop Ghana’s stock market if lawmakers consider such concerns and work towards attaining them.
“The stock market needs to be developed and if we have used all means to get people to list on the GSE yet Nigeria has gone the extra mile, then we need to reconsider.”
“I believe that with the law, Nigeria should be able to enforce it and once they are able to do that, other West African markets will follow suit,” he added.
By: Vivian Kai Lokko/Pius Amihere Eduku/citibusinessnews.com/Ghana