By Sylvana TEIMAN
I clearly recall my initial visit to the Ghana Stock Exchange (GSE). Although I was enthusiastic about learning more, my knowledge at the time was rather superficial. The concepts of stocks, shares, and dividends were primarily what I associated with it.
However, as I delved deeper into it, I began to perceive the genuine essence of GSE: capital. Not merely any kind of capital, but one that was easily available, cost-effective, and supported by Ghana.
My experience with the GSE has been enlightening. I’ve witnessed firsthand how local enterprises are utilizing the Exchange to remain viable and expand—sustainably.
I have seen what often goes unnoticed: fundraising is not merely a financial action but rather a growth strategy, a means of building trust, and ultimately, a driving force behind national progress.
Allow me to share an example that keeps inspiring me.
Kasapreko PLC, a prominent locally-based beverage company in Ghana, aimed to secure GHS 600 million within three years via the Ghana Fixed Income Market (GFIM). Skeptics questioned if this target would be achievable. However, after only twelve months, Kasapreko managed to gather more than GHS 350 million, with costs being approximately 10 percent lower compared to conventional funding methods.
That is significant.
This serves not just as an indication of the robustness of the GSE as a funding mechanism, but also as evidence that our domestic financial frameworks are evolving to foster actual economic expansion.
Even more uplifting is the fact that the funds gathered weren’t solely beneficial for the company; they also provided an opportunity for regular Ghanaians and institutional investors alike to contribute directly to the nation’s economic growth. This exemplifies the amplified impact of a robust capital market.
Many companies continue to depend exclusively on conventional lending channels for funding. Although this approach can be effective at times, it frequently involves elevated interest rates, brief repayment periods, and reduced adaptability.
The GSE provides an alternative route — one that fosters long-term consideration, enhancements in governance, and collective economic growth.
By utilizing public offerings, corporate bonds, and various financial tools, companies can access capital without reducing their equity stakes or straining their liquidity. This approach enables more prudent and strategic expansion—and it’s proving effective right here in Ghana.
However, this option remains largely overlooked. Numerous entrepreneurs believe that the Exchange is solely intended for big businesses or international investors.
The reality is that the GSE currently offers specialized platforms for Small and Medium Enterprises (SMEs), such as the GAX (Ghana Alternative Market). This platform is accessible to enterprises prepared to expand responsibly, openly, and with foresight.
The most compelling aspect of the stock exchange, which has become dear to me, is its promotion of ownership. By investing in local businesses, Ghanaians aren’t merely purchasing stocks; they’re contributing to advancement. This act supports employment generation, enhances value within the country, and circulates wealth domestically.
For the entrepreneur, obtaining funds via the Exchange indicates that they are prepared to compete at a higher level, demonstrating accountability and confidence in their future plans. This ethos of ownership should be promoted further. It’s not only needed in corporate settings but also within marketplaces, educational institutions, and personal monetary choices.
I have begun to think that Ghana doesn’t face a capital issue; rather, it confronts an
capital alignment
The issue at hand requires a change in perspective: moving away from short-term lending towards long-term collaborations, and shifting from standalone financial choices to active involvement in shared marketplace activities.
The Ghana Stock Exchange provides the link between aspiration and execution, connecting local enterprises with the capital they require. If we consider Kasapreko’s journey as an example, I am convinced that numerous additional companies—including your own—can utilize this platform to expand, compete, and take the lead.
Based on both my personal and professional experiences, the GSE isn’t merely a marketplace; it’s a movement. A movement that equips businesses with essential resources and enables Ghanaians to participate in something larger than themselves.
If you’re a business owner contemplating how to finance your upcoming expansion or an investor seeking impactful avenues to expand your portfolio—consider giving the Ghana Stock Exchange another thought. The resources are available, the achievements are genuine, and the future is undoubtedly within our reach to mold.
>>>the writer
is enrolled at the University of Ghana Business School, working towards a Bachelor’s degree in Business Administration with an emphasis on Accounting and Finance. As the Deputy Chief of Staff for the University of Ghana Students’ Representative Council, along with being the Publicity Head for Enactus University of Ghana, she demonstrates significant leadership skills. Her enthusiasm for finance is evident through her involvement in the Young Investors Network, contributing to projects alongside the Ghana Stock Exchange aimed at encouraging young people to invest.
Sylvana emerged as the champion in the 2024 KPMG Internal Audit Article Writing Contest, highlighting her exceptional analytical skills and dedication to achieving financial excellence. Additionally, she has acquired practical industrial knowledge from internship stints at the Ghana Stock Exchange, KPMG, and the African Regent Hotel. You may contact Sylvana at 0208395962 or
[email protected]
,
http://linkedin.com/in/sylvanateiman
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