Ghana’s Securities and Exchange Commission breaks down 5-year plan

Ghana’s Securities and Exchange Commission (SEC) has revealed an ambitious 5-year strategy aimed at enhancing institutional capacity, embracing next-generation technology, and incorporating sustainable finance principles to strengthen and deepen capital market activity in the country. In a recent interview with CNBC Africa, the Director-General of the Commission, Daniel Ogbamey-Tetteh, outlined the key pillars and goals of the SEC’s strategic plan, highlighting the importance of improving market liquidity, increasing the investor base, strengthening market infrastructure, and enhancing regulation and market confidence. The SEC’s 5-year strategy aligns closely with the broader capital market master plan, which aims to create a deep, efficient, diversified, and well-regulated capital market with a full range of products attractive to both domestic and international investors. Tetteh explained that the SEC’s strategy focuses on five key goals, each corresponding to the pillars identified in the capital market master plan. Goal number one of the SEC’s strategy is to deepen and expand markets and products, addressing the need to attract more issuers to the market. Initiatives under this goal include developing a pipeline of state-owned enterprises and small and medium-sized enterprises, promoting collective investment schemes, and expanding the reach of Real Estate Investment Trusts (REITs). The second goal of the SEC’s 5-year strategy centers on enhancing market awareness and education, with a particular emphasis on engaging the youth. Tetteh highlighted the Commission’s efforts to execute sustained and coordinated investor education targeting the youth, citing a successful engagement with high school students in Kumasi as an example. Under the third goal of enhancing market infrastructure, the SEC plans to establish a financial data hub to provide easy access to information for market participants. Additionally, the Commission aims to expand training programs for market intermediaries to ensure they are well-equipped to interface with investors. The fourth goal focuses on developing a robust legal and regulatory framework to underpin market operations, while the fifth goal aims to enhance the capability and capacity of the SEC itself. Tetteh emphasized the importance of these goals in ensuring the long-term sustainability and growth of Ghana’s capital market. Tetteh also discussed the significance of balancing the demand and supply sides of the market, noting the need to attract both issuers and investors. By promoting financial literacy, expanding access to information, and creating opportunities for market participation, the SEC hopes to drive increased activity and listings on the Ghanaian market. Overall, the SEC’s comprehensive 5-year strategy underscores its commitment to fostering a vibrant and inclusive capital market ecosystem in Ghana. With a clear roadmap laid out, the Commission is poised to navigate the evolving landscape of finance and investments, paving the way for sustainable growth and development in the country's capital markets.