A former Director-General of the Securities and Exchange Commission (SEC) Dr. Adu Anane-Antwi has expressed worry over low capital strength of businesses due to their small sizes.
He argues that the small size of some Ghanaian companies is due to their refusal to come merge to boost their capital.
According to him, the small capital base of most indigenous companies may be attributed to their inability to list on the bourse.
“You realize that initially the momentum was there, about five or so companies got listed but for more than a year nobody is coming and that brings us back to this philosophy of not wanting to share our businesses and risks with others and that is a challenge in this country,” he said.
“We always want to own whatever business we are running wholly but you cannot develop your businesses with only your own small capital or loan.” he added.
In an interview with Citi Business News, Dr. Anane Antwi advised small and medium companies to work together to strengthen their businesses and also equip them with better capacity to list on the stock market.
“We need to expand. I am worried because there are so many businesses that if people attract others to join, they will do more. I seriously hope these companies begin to come together so their businesses can expand and probably list on the stock.” he stated.
He spoke to Citi Business News at the sidelines of the Citi Investment Opportunities Forum in Accra.
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By Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.
