Ghana’s capital market has money, but lacks investment-ready projects – GSE MD

Ghana's capital market possesses ample funds to support businesses and large-scale infrastructure initiatives, according to the Ghana Stock Exchange (GSE) Managing Director, Abena Amoah. However, she highlights a lack of investment-ready projects as the primary issue. Speaking at the Ghana Economic Forum, Amoah urged businesses and state-owned enterprises (SOEs) to enhance their corporate governance frameworks and create strategic investment plans to entice long-term financing from both domestic and foreign investors.

Amoah emphasized that the market's primary challenge lies not in a scarcity of capital, but rather in the limited availability of credible projects that investors can fund. The capital market can offer various financing options, such as five-year and ten-year debt instruments, as well as permanent capital, without necessitating companies to provide physical collateral.

Investors are reportedly more inclined to support businesses with robust corporate governance, transparent financial reporting, and confidence in management. She provided examples of companies that have successfully obtained long-term funding on the Ghana Fixed Income Market without the need for collateral. Consequently, Amoah advocated for state-owned enterprises, particularly those seeking government backing for expansion, to explore capital-raising methods through the stock market.

She identified potential investment prospects in the energy and infrastructure sectors, including Ghana Airports Company's expansion projects and investments in electricity generation. Amoah concluded by stating that bolstering transparency, accountability, and effective corporate governance would bolster investor confidence and draw long-term capital into Ghana's productive sectors.