A Commissioner of the Securities and Exchange Commission (SEC), Dr. Charles Asembri, has stressed the need for education and economic improvement, to attract businesses unto the Ghana Alternative Market, GAX.
According to him, the objectives to help Small and Medium Scale Enterprises (SMEs) increase their capital and expand, could largely be achieved if such fundamentals are put in place.
“The industry players and the stock exchange altogether should educate investors of prospective to list on the GAX,…both education and improvement will add up to increase the throughput in the GAX,” Dr. Asembri stated.
Dr. Asembri who has over four decades’ experience in the capital market, maintains that though the alternative market is a platform for securing funding, the urge to undertake such activities will be largely influenced by an economic drive for expansion.
“If there is the opportunity to expand then you need more money and then you go and raise funds. But if the companies are not growing fast, then obviously they will not need more funding. This appears like the proverbial chicken and egg issue… we are looking at the situation where we expect the GAX to grow but the fundamentals should be there for the companies to want to source funding,”
Being in existence for about three years now, the GAX currently has only four equities listed with five others issuing bonds to raise capital.
But industry watchers expect the numbers to increase to promote the capital market.
Dr. Asembri is however confident the fortunes of the GAX will turn around soon.
“When you’re looking at companies coming onto the Exchange; whether GAX or the broader market, that will be the time that they need funding. The need for funding will also be influenced by the need to expand the companies,” he opined.
Dr. Asembri who doubles as a member of the Board for the Securities and Exchange Commission, was speaking at this year’s Ghana Investment Awards where he was awarded the Ultimate award of the lifetime achiever’s prize.
According to the organizers of the awards, the Premier Network Investment Club, Dr. Asembri’s honor was largely influenced by his over four decades’ contribution to the capital market in various categories.
A total of seven investment companies were awarded in various categories at this year’s awards.
Though there was no overall investment company award this time round, First Banc topped three categories to emerge as the company with the highest number of awards at the event.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana