Developing the capital market: stakeholders call for intensifying education

Stakeholders within the securities (debt or equity) industry have expressed concern over the falling standards of the capital market in Ghana.

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At a seminar held yesterday at the Kempinski hotel in Accra, stakeholders lamented that participation within the capital market has been low partly because most Ghanaians have little or no knowledge of what the capital market is. They have in effect urged government to intensify education so as to draw the needed participation from Ghanaians.

Addressing participants, panel members comprising mainly CEOs of financial institutions acknowledged the fact that a well-managed capital market has the potentials of transforming the economy. However, Ghana is yet to tap these potentials because of the low participation stemming out of the lack of education.

Mr. Kisseih Antonio, Managing Director of EDC Investor Ltd explained that on the money market, terms like fixed income and investment are readily understood by Ghanaians as supposed to stock or buying bond on the capital or stock market and that the term stock exchange has still not been understood by many Ghanaians. ‘’How then do people join a business they don’t understand?’’ he questions.

The stakeholders also called for a stable macro-economic environment with decreased inflation, fixed fiscal policy to make the capital market attractive to the general public.
The seminar was organized by the Ghana Securities Industry Association (GSIA) as part of the association’s annual capital market week celebrations. This year’s celebrations is on the theme ‘’Unleashing the potential of the capital market in Ghana.’’

The capital market is said to be a market where business enterprises and government can raise funds together. Unlike the money market where financial instruments with high liquidity and very short maturities are traded, capital market aims at raising long term funds.

By Charles Akrofi/NewsGhana.com.gh

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