Ghana’s capital market has money, but lacks investment-ready projects – GSE MD

Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, says Ghana’s capital market has sufficient funds to support businesses and major infrastructure projects but lacks a strong pipeline of investment-ready opportunities.

She is therefore urging businesses and state-owned enterprises (SOEs) to strengthen their corporate governance structures and develop strategic investment plans to attract long-term financing from domestic and international investors.

Speaking at the Ghana Economic Forum organised by the Business and Financial Times (B&FT), she said the challenge facing the market is not necessarily a shortage of capital but the limited supply of credible projects that investors can finance.

“Today, our problem is not lack of money. Our problem on this market is the lack of supply,” she stressed.

Ms. Abena Amoah explained that the capital market can provide different forms of financing, including five-year and ten-year debt instruments, as well as permanent capital, without necessarily requiring companies to provide physical collateral.

She said investors are increasingly willing to support businesses based on strong corporate governance, transparent financial reporting and confidence in management.

She cited companies that have successfully raised long-term financing on the Ghana Fixed Income Market, noting that some have secured five-year and ten-year funding without collateral.

The GSE Managing Director is consequently calling on state-owned enterprises, particularly those seeking government funding for expansion, to consider raising capital through the stock market.

She cited potential investment opportunities in the energy and infrastructure sectors, including expansion projects by Ghana Airports Company and investments in electricity generation.

According to her, opening up such projects to the capital market would allow Ghanaians, diaspora investors and international institutions to participate in financing Ghana's development.

She added that improved transparency, accountability and effective corporate governance would help build investor confidence and attract patient capital into productive sectors of the economy.