GSE CEO speaks on 2024 listings & commercial paper market
On Monday, Atlantic Lithium listed on the Ghana Stock Exchange offering just over 649.6 million shares in a secondary listing. Meanwhile, the CEO of Ghana Stock Exchange, Abena Amoah says the introduction of the new Commercial Paper market is to attract more issuers, diversify products and boost liquidity. She joins CNBC Africa for more on the offerings from the Ghana Stock Exchange.
Wed, 15 May 2024 14:09:56 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Introduction of the Commercial Paper market to broaden finance options for issuers and provide short-term lending opportunities for corporate entities and institutional investors.
- Significant progress on the demilitarization initiative and a focus on diversifying product base to cater to institutional investors.
- Landmark listing of Atlantic Lithium showcases the growth potential of the Ghana Stock Exchange and highlights the importance of mining companies listing their securities to involve local investors.
The Ghana Stock Exchange (GSE) recently witnessed a significant milestone with the introduction of the new Commercial Paper market aimed at attracting more issuers, diversifying products, and boosting liquidity. Abena Amoah, the CEO of GSE, highlighted the importance of this new market during an interview with CNBC Africa. The Commercial Paper market, launched last Friday, fills a crucial gap in the market by providing short-term lending opportunities for corporate entities and offering institutional investors access to regulated investment options. This initiative broadens the financing options available to issuers on the exchange and paves the way for a more diverse market landscape. The GSE's 10-year master capital market development plan includes the demilitarization process as a key pillar. Amoah emphasized the progress made in this area, with a strategic focus on implementing demilitarization this year. Stakeholders across the board are involved in the demilitarization committee to ensure the initiative's success. Diversification of the product base and education of institutional investors are crucial components of the GSE's strategy, aligning with its long-term goals. The recent listing of Atlantic Lithium on the GSE marked a landmark event, showcasing the exchange's growth potential and commitment to involving local investors in mining projects. Working closely with regulators and mining companies, the GSE aims to provide opportunities for Ghanaians to participate in capital raises and gain exposure to mining as an asset class. The listing of Atlantic Lithium, the first lithium or green mineral company in West Africa, underscores the exchange's focus on ESG products and sustainable investing. Looking ahead, the GSE anticipates more equity and bond listings, with several companies expressing intentions to raise significant capital on the market. The buoyant outlook for the GSE is supported by a positive economic environment in Ghana, with improvements in inflation numbers and a more stable currency contributing to a 17 percent increase in the equities market this year. The fixed income market is also experiencing substantial growth, with a 70 percent increase in value traded compared to the previous year. The overall trajectory for the GSE is cautiously optimistic, with Amoah emphasizing the importance of policymakers' support in creating a conducive macroeconomic environment that fosters business growth and capital demand. As the GSE continues to engage with businesses and investors, it is poised for continued success in the medium to long term.
