Will Ghana stock market sustain 2024 rally?

The Ghana Stock Exchange (GSE) made headlines in 2024 as the best performing equities market in West Africa, boasting a remarkable 56.17 per cent rally. Analysts and market experts are optimistic about the sustainability of this growth in 2025, attributing it to robust corporate earnings and improved investor sentiments. Abena Amoah, the CEO of the GSE, recently shared insights on the market's performance and future plans in an exclusive interview with CNBC Africa. Abena Amoah commended the entire market for their collective efforts that led to winning the award for the best stock exchange for economic growth in West Africa. She emphasized the importance of engaging the market, executing financial literacy programs, diversifying products, and attracting profitable companies that share information with investors. These strategic initiatives have contributed to the positive performance of the GSE in recent years. Looking ahead to 2025, Amoah outlined key strategic areas for the GSE, including a focus on innovation, technology improvement, and plans to enhance the IPO market. She highlighted the introduction of a commercial paper market and an over-the-counter market in response to market demand. The GSE is set to launch a new Central Securities Depository (CSD) software to streamline investor account management and enhance market operations. In terms of driving investor confidence and education, Amoah underscored the importance of overhauling the securities industry law to provide clarity and introduce new products. She emphasized the role of investor education programs like 'Facts Behind the Figures' and the use of technology to empower retail investors with access to information in local languages. The GSE's efforts to attract new listings and diversify the market reflect a commitment to showcasing key sectors of the economy. While progress has been made, Amoah acknowledged the need to attract more companies in sectors like services, financial services, and technology. Collaborative initiatives with industry stakeholders aim to create a more vibrant and representative stock exchange. Discussing the broader landscape of African stock markets, Amoah highlighted the importance of diversification and collaboration among exchanges. Programs like the West Africa Capital Markets Integration Project and the African Exchanges Linkage Project play a crucial role in providing investors with broader choices and access to larger markets. The GSE continues to develop innovative products to meet the evolving needs of investors. Looking towards the future, Amoah expressed optimism about the economic outlook and its potential impact on listed companies' earnings. With a new government focused on stability and growth, the GSE anticipates a positive environment for companies seeking to raise capital and expand their operations. Policy and regulatory support are seen as essential for fostering a conducive market environment. In the context of the African Continental Free Trade Area (AfCFTA), Amoah emphasized the pivotal role of capital markets in supporting economic transformation and business expansion. By enabling companies to raise capital and encouraging individual African investors to participate in wealth generation, stock exchanges like the GSE are poised to contribute to the success of AfCFTA and drive growth across the continent. As the GSE gears up for another year of opportunities and challenges, Abena Amoah's strategic vision and commitment to market development position the exchange for continued success in 2025.