The Minister of Finance, Ken Ofori-Atta, says confidence in Ghana’s financial markets should rise, with the introduction of a 10-year strategic Capital Market Master Plan by the Securities and Exchange Commission (SEC).
The Capital Market Master Plan (CMMP) is aimed at diversifying the capital market as well as boosting economic growth.
The plan hinges on four main pillars; creating diversity of investment products and enhancing liquidity in the securities market, increasing the investor base, strengthening the infrastructure and improving market services, and improving regulation, enforcement and market confidence.
It is also intended to help raise funds for key infrastructure projects in order to meet the country’s economic growth agenda.
Speaking at the launch of the 10-year strategic Capital Market Master Plan, Mr. Ofori-Atta said the creation of such a plan is long overdue as it is critical to the country’s post-COVID-19 economic recovery.
“The Capital Market Master Plan could not have come at a better time. The Ghanaian capital market has often been touted as one with numerous opportunities for growth, mainly due to the dominance of traditional securities in the space. Meanwhile, Ghana is increasingly becoming the choice destination for continental initiatives (such as the siting of the AfCTA secretariat in Accra) and multinational companies. Additionally, the average investor is becoming more savvy and more exposed to global investment options.
The convergence of these factors presents attractive opportunities to imbue the capital market in Ghana with more depth, breadth, and efficiency for it to be positioned as the market of choice to local, regional, and foreign investors. One of the initiatives that the government of President Nana Akufo Addo is pursuing is to reposition Ghana as the Financial Hub for the sub-region and this Capital Market Master Plan would certainly complement it, thus making the launch very opportune,” he said.
The Director-General of the SEC, Rev Daniel Ogbarmey Tetteh, further emphasised the importance of the capital markets as the place for raising ‘patient capital’, which is critical for financing growth.
He highlighted the benefits of the Master plan for different stakeholders, explaining that, “for the ordinary citizen, it enables the creation of jobs, as businesses will be able to raise capital, whilst it also facilitates the expansion of businesses and creates a viable avenue for investors to deploy surplus funds.”