Capital Markets

After rising 71.8% in 2013, Ghana’s stock market had a modest 2014, with the benchmark index up just 5.4% (and most of that rise seen in the beginning of the year following on the 2013 rally). To a great extent, the muted performance reflected external circumstances, namely the drop in commodity prices and the prospect of rising interest rates in the US. Currency depreciation against the US dollar was an issue as well. Nevertheless, Ghana’s markets are developing in spite of the limited trading volumes, with momentum building and a solid foundation being set for future growth. Companies are continuing to list on the Ghana Alternative Exchange (GAX), the depository is installing a new working platform and an electronic bond market is being created. In addition, a new and far-reaching Securities Law is in the works that could result in a wider range of products on the market, better and more effective regulation, and more flexibility for investment funds.

This chapter includes a viewpoint from William Adjovu, CEO, Liberty Capital.