Capital Markets
From The Report: Ghana 2016
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After rising 71.8% in 2013, Ghana’s stock market had a modest 2014, with the benchmark index up just 5.4% (and most of that rise seen in the beginning of the year following on the 2013 rally). To a great extent, the muted performance reflected external circumstances, namely the drop in commodity prices and the prospect of rising interest rates in the US. Currency depreciation against the US dollar was an issue as well. Nevertheless, Ghana’s markets are developing in spite of the limited trading volumes, with momentum building and a solid foundation being set for future growth. Companies are continuing to list on the Ghana Alternative Exchange (GAX), the depository is installing a new working platform and an electronic bond market is being created. In addition, a new and far-reaching Securities Law is in the works that could result in a wider range of products on the market, better and more effective regulation, and more flexibility for investment funds.

This chapter includes a viewpoint from William Adjovu, CEO, Liberty Capital.

Articles from this Chapter

Overview

Foundation for growth: The securities exchanges are small, but renewed effort is supporting growth
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After rising 71.8% in 2013, Ghana’s stocks had a modest 2014, with the benchmark index up just 5.4% (and most of that rise seen in the beginning of the year following on the 2013 rally). To a great extent, the muted performance reflected external circumstances. As with the banking sector, equities were in competition with government securities, which offer high, risk-free returns. The share market also suffered from exogenous forces, namely the drop in commodity prices and the threat of rising…

Analysis

A penny saved: Pension funds slowly flow into the market
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High expectations for the impact of pension reforms on the performance of equity markets and bonds have been deflated after the funding issues and technical glitches slowed the flow of investments from the second tier of the revised pension system. Hundreds of millions of cedis had been expected to be invested annually as 5% of wages were directed towards privately managed funds, but so far the market has been underwhelmed. “It has not kick started the market as expected,” Bubune Kofi Sorkpor,…

Viewpoint

Unlocking our potential: William Adjovu, CEO, Liberty Capital, on reforming the markets
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Access to long-term capital remains a major barrier to private sector growth in Ghana. Firms access long-term capital primarily through the capital markets, and as the economy continues to expand, demand for long-term capital to facilitate strong growth will also continue to rise. In Ghana the cost of capital, access to credit and access to other forms of capital remain a major concern for businesses. Our greatest opportunity, as capital market operators, is to push through the reform of…

Analysis

CAL Bank: Finance
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The Bank CAL Bank is a Ghanaian bank that provides a broad range of banking and financial products and services to large corporations, small and medium-sized enterprises, public-sector institutions and retail customers through a network of 24 branches across the country. The products and services include business loans, payment and account services, deposits, trade finance, consumer banking services, leases, mortgages and investment banking. In November 2004, CAL Bank was officially listed on the Ghana Stock Exchange. The bank has grown significantly since it went public. It now has a network of about 95 ATMs and its branches have increased…

Analysis

Société Générale Ghana: Finance
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The Bank Société Générale Ghana, a strong local bank, is one of the leading financial institutions in Ghana. It operates 37 fully networked branches, agencies and outlets across the country and serves a wide range of corporate customers, individuals and small and medium-sized enterprises. The bank was incorporated on February 7, 1975 as a limited liability company with the name Security Guarantee Trust Limited and was solely owned by the Social Security and National Insurance Trust (SSNIT). In February 1976, SSNIT changed the bank’s name to Social Security Bank Limited (SSB) and was subsequently granted a license by the Bank of Ghana to…

Analysis

Enterprise Group: Insurance
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The Group Enterprise Insurance Company (EIC) was established in 1924 and is the oldest insurance company in Ghana. It was originally known as Royal Exchange Assurance Corporation UK, before it changed its name to Guardian Exchange Assurance Ghana and finally to EIC in 1977. EIC was listed as one of the pioneering companies of the Ghana Stock Exchange (GSE) in 1990, making it the first insurance company to be listed on the GSE. In the year 2000, Enterprise Life was incorporated in a partnership between EIC and African Life through the International Finance Corporation. Enterprise Life has seen impressive growth since 2001 and currently is the…

Analysis

Ghana Oil Company Limited: Distribution
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The Company Ghana Oil Company Limited (GOIL) was incorporated as a private limited liability company on June 14, 1960 as AGIP Ghana Company Limited with the objective of marketing petroleum products and related products – particularly fuels, liquefied petroleum gas, lubricants, bitumen, and specialty products in Ghana. The shareholders were the Italian companies AGIP and Snam. On December 16, 1968, Snam transferred its 10% shareholding, representing 95,000 shares to Hydrocarbons International Holdings of Zurich, Switzerland. In 1974 the Government of Ghana acquired the shares of AGIP and Hydrocarbons International Holdings in AGIP Ghana Company…

Analysis

Standard Chartered Bank Ghana: Finance
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The Bank Standard Chartered Bank Ghana has been in operation since 1896 when it was known as the Bank of British West Africa. After Ghana’s independence, the bank’s name was changed to Bank of West Africa Limited and upon a merger with Standard Bank in 1969, the name was changed to Standard Bank of West Africa Limited. The bank was registered a limited liability company in Ghana on September 18, 1970 under the Companies Act. The bank became a member of the Standard Chartered Group after a merger between Standard Bank and the Chartered Bank. The Standard Chartered Bank Ghana Limited name was adopted in 1985 as part of the group’s effort…

Analysis

Total Petroleum Ghana: Distribution
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The Company Total Petroleum Ghana was incorporated in Ghana on December 31, 1951 as Socony-Vacuum Oil Company (Gold Coast Limited). It was at that point a wholly-owned subsidiary of Socony-Vacuum Oil of the US. The name of the Ghanaian subsidiary was changed from Mobil Oil Gold Coast to Mobil Oil Ghana. On September 6, 2006 the shareholders of the company approved that the company’s name be changed again to Total Petroleum Ghana. The firm is primarily engaged in the marketing of petroleum products and services. Total was provisionally listed on the Ghana Stock Exchange on July 19, 1991 and later had its official listing on September 18, 2006.…