Ghana’s financial sector is poised for transformative change as leaders from the Ghana Stock Exchange and the Ghana Securities Industry Association call for a sweeping overhaul of the country’s capital market framework.
In discussions with Business & Financial Times, industry executives expressed cautious optimism that new legislative and structural reforms, spearheaded by the Securities and Exchange Commission’s recently appointed Acting Director-General, James Avedzi Klutse, will help modernize the market and secure long-term stability.
Managing Director of the Ghana Stock Exchange, Abena Amoah, stressed the urgency of updating the Securities Industry Act—a framework that has governed the market since 2016 but now appears outdated in the face of evolving global standards. Amoah explained that recent reviews aim to streamline regulations so they are less burdensome on smaller issuers while still protecting investors and maintaining integrity. Meanwhile, GSIA President Winston Nelson Jr. highlighted the need to address regulatory gaps that became apparent during past financial sector challenges, such as the cleanup exercise of 2017 to 2019 and subsequent market directives. He believes that a revamped act could build a foundation robust enough to support the industry for decades to come.
Both leaders underscored the importance of maintaining strong, consistent oversight even as they push for change. They pointed to the Capital Market Master Plan—a comprehensive initiative designed to guide the evolution of Ghana’s markets—as a critical project that requires ongoing commitment. While progress has been made, there is a shared expectation that the new SEC leadership will accelerate its implementation, thereby fostering an environment that is both competitive and investor-friendly. Amoah noted that reinstating incentives like the capital gains tax exemption could further energize market participation, a move that has already generated significant discussion among stakeholders.
The reform agenda is not limited to legislative updates. There is also momentum behind the demutualisation of the Ghana Stock Exchange, a process intended to transition the bourse into a profit-driven, shareholder-owned entity. After years of consultations and preparatory work, industry insiders hope that this structural shift will drive operational efficiency and align the exchange more closely with international practices.
Yet, amid these promising developments, there remains a lingering concern over the chronic underfunding of the SEC. Critics, including Nelson, argue that the regulator’s limited resources and staffing—especially when compared with the well-resourced Bank of Ghana—could undermine efforts to implement the desired reforms. Suggestions have been made to reallocate a portion of fees from other regulatory bodies, such as the National Pensions Regulatory Authority, to help bolster the SEC’s capabilities. Such measures, they contend, are essential to ensuring that the market is not only reformed on paper but also supported by a robust and effective regulatory framework.
While the path ahead is filled with challenges, the push for capital market reforms signals a determined move toward a more dynamic and resilient financial sector in Ghana. As the government and regulators work to reconcile modern standards with local realities, industry observers remain hopeful that these changes will lead to greater market stability and sustained growth over the coming decades.
