GSE: Establishment of OTC market onboards unlisted public companies

The Ghana Stock Exchange (GSE) has been making significant strides in expanding opportunities for unlisted public companies with the establishment of the Over-the-Counter (OTC) market and the launch of a commercial paper platform. In a recent interview with CNBC Africa, Frank Berle, the Deputy Managing Director of the GSE, highlighted the purpose of the OTC market to provide visibility to unlisted public companies and explore liquidity while enabling price discovery. The feedback from investors and stakeholders has been positive, especially following the listing of Ashanta Gold and Atlantic Lithium on the exchange. Berle expressed optimism that more companies would be listed in the next two to three years, contributing to market growth and investor options. The launch of the commercial paper market has also been a significant development, allowing companies to raise capital and manage short-term liquidity needs effectively. The GSE has been actively engaging with institutions interested in issuing commercial paper and facilitating trading on the market. Berle emphasized the importance of tapping into Ghana's pension funds, which hold substantial resources amounting to about 50 billion Ghana Cedi or approximately 4 billion USD. With a focus on local pension funds, the GSE aims to provide investment opportunities that yield returns for future pensioners. The engagement with pension funds has led to an increase in their contribution to equity trading, demonstrating progress in attracting institutional investors. While the focus has primarily been on local pension funds, the GSE envisions attracting global investors in the future. The GSE has witnessed heightened activity in listings this year, marking a shift from previous years of relative quiet. Notable listings such as Asante Gold and Atlantic Lithium have added significant value to the exchange. The GSE is actively working with state institutions and associations to bring more companies onto the market, with a target of listing five to six companies in the next two to three years. Additionally, the demutualisation process of the GSE is progressing steadily, with approvals secured and relevant committees established. The exchange is on track to complete the demutualisation within the next seven to eight months, aligning with its strategic goals for continued growth and development.