AfDB raises $400,000 to strengthen Ghana’s capital market

The African Development Bank Group said it has joined hands with the Ghanaian Securities and Exchange Commission to launch a $400,000 project to consolidate on the country’s capital market operations.

This followed the signing of a grant agreement to develop a risk-based supervisory solution for the Ghanaian capital market, the AfDB disclosed on Thursday.

It said the grant, from its Capital Markets Development Trust Fund, will finance the provision of technical assistance and capacity building for the SEC, the markets regulator, and Ghana Stock Exchange.

“The project will enhance the SEC’s institutional capacity and readiness to transition from a compliance-based to a risk-based supervision approach for the securities market.

“It will also enable the development and streamlining of policy and regulatory frameworks for pooled funds, and support the broadening of market instruments through the introduction of products such as asset-backed securities,” the development bank stated.

At the launch event, the Director-General of the SEC, Daniel Tetteh, applauded AfDB for the project, which is expected to bolster the commission’s capacity to fulfill its mandate.

The project will also benefit capital market participants in Ghana, including securities issuers and investors as well as help broaden available products and structures for savings and investment, the bank said.

The Managing Director of GSE, Mr Ekow Afedzie, noted that the project has come at an opportune time the stock market was introducing new products to deepen the market and improve liquidity.

“Thus, the introduction of the new products will boost investor confidence and achieve the ultimate goal of making the Ghana Stock Exchange a preferred investment destination in the sub-region,” Afedzie said.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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