GSE CEO speaks on 2024 listings & commercial paper market

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.