Capital markets
From The Report: Ghana 2013
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While Ghana benefits from a roster of financial actors, the country’s capital markets are modest compared to continental exchanges in Cairo, Johannesburg, Lagos and Casablanca. The Ghana Stock Exchange (GSE) has just 36 equities and one exchange-traded fund listed on its equities exchange alongside a bond market dominated by government securities. In recent years the requirements for listing have been reduced, while the GSE has also been educating Ghanaians about the benefits of raising capital through equity. There is a long list of state-owned enterprises that could list on the bourse, and their doing so might encourage more private firms to follow suit. Ghana’s capital markets remain extremely attractive to investors seeking a toehold in the West African sub-region, in light of its robust growth, diversified commodity exports and political stability.
This chapter contains an interview with Kofi Yamoah, Managing Director, Ghana Stock Exchange, and a viewpoint from David Awuah-Darko, Managing Director, IC Securities.
Articles from this Chapter
Building the bourse: Strong results and pending changes are expected to increase activity on the exchange
A new alternative: Efforts are under way to encourage small businesses to listOBGplus
In a bid to stimulate more activity and to encourage a broader range of businesses to engage with the Ghana Stock Exchange (GSE), an alternative exchange was launched in May 2013 with the aim of helping develop small and medium-size enterprises (SMEs). The Ghana Alternative Market (GAX) has fewer requirements, faster procedures and additional incentives for businesses considering it as a means of funding. LOWER REQUIREMENTS: The minimum capital requirement to list on the GAX, post-floatation,…
OBG talks to Kofi Yamoah, Managing Director, Ghana Stock Exchange (GSE)OBGplus
Interview: Kofi Yamoah How has activity on the GSE evolved in recent times? KOFI YAMOAH: There has been a big leap in secondary market activity in 2013. The value of shares being traded has been five times that in the same period in 2012, volumes have doubled compared to 2012 and the index was up 57% by the end of May 2013, which indicates that there are good returns to be made. The shares of 22 listed companies have risen by more than 15%. A growing stock exchange will have a positive impact…
OBG talks to Kofi Yamoah, Managing Director, Ghana Stock Exchange (GSE)OBGplus
Interview: Kofi Yamoah How has activity on the GSE evolved in recent times? KOFI YAMOAH: There has been a big leap in secondary market activity in 2013. The value of shares being traded has been five times that in the same period in 2012, volumes have doubled compared to 2012 and the index was up 57% by the end of May 2013, which indicates that there are good returns to be made. The shares of 22 listed companies have risen by more than 15%. A growing stock exchange will have a positive impact…
David Awuah-Darko, Managing Director, IC Securities, on mergers and acquisitions activityOBGplus
Conventional wisdom has long suggested that Ghana would never be a hotbed of mergers and acquisitions (M&A) activity, given the ultra-conservative nature and fiercely proprietary culture of its first few generations of successful entrepreneurs. That myth has been debunked in recent years as the deal-making market has come to life with a series of successful deals as well as some protracted, unsuccessful deal attempts. For example, in April 2013, press reported the acquisition of International…
CAL Bank: BankingOBGplus
THE COMPANY: CAL Bank is one of the leading diversified financial institutions in Ghana, providing a range of banking and financial solutions to large corporations, small and medium-sized enterprises, public sector institutions and retail customers. In addition to its commercial banking, the company also owns three subsidiaries: a securities broker, a fund manager and investment advisor, and a custodian services provider. In 2012 CAL Bank’s subsidiaries accounted for 4.2% of the group’s GHS52m ($2.44m) net profit. During 2012, the bank successfully raised GHS75m ($35.2m) of Tier 1 capital via an over-subscribed private placement to meet…
CAL Bank: BankingOBGplus
THE COMPANY: CAL Bank is one of the leading diversified financial institutions in Ghana, providing a range of banking and financial solutions to large corporations, small and medium-sized enterprises, public sector institutions and retail customers. In addition to its commercial banking, the company also owns three subsidiaries: a securities broker, a fund manager and investment advisor, and a custodian services provider. In 2012 CAL Bank’s subsidiaries accounted for 4.2% of the group’s GHS52m ($2.44m) net profit. During 2012, the bank successfully raised GHS75m ($35.2m) of Tier 1 capital via an over-subscribed private placement to meet…
Fan Milk Ghana: Consumer goodsOBGplus
THE COMPANY: Fan Milk International A/S is a leading dairy and juice production and distribution company with operations across West Africa. Founded in Ghana in 1960, the group now boasts operating subsidiaries in six regional countries: Nigeria, Togo, Côte d’Ivoire, Burkina Faso, Liberia, and Benin. Fan Milk Ghana (FML) has been operating in Ghana for over 50 years, producing and selling both dairy products and low-end fruit drinks. FML has maintained a near-monopoly market leadership position in Ghana’s ice cream and yoghurt segment. It has sustained growth and market share though its excellent distribution network and strong brand…
Fan Milk Ghana: Consumer goodsOBGplus
THE COMPANY: Fan Milk International A/S is a leading dairy and juice production and distribution company with operations across West Africa. Founded in Ghana in 1960, the group now boasts operating subsidiaries in six regional countries: Nigeria, Togo, Côte d’Ivoire, Burkina Faso, Liberia, and Benin. Fan Milk Ghana (FML) has been operating in Ghana for over 50 years, producing and selling both dairy products and low-end fruit drinks. FML has maintained a near-monopoly market leadership position in Ghana’s ice cream and yoghurt segment. It has sustained growth and market share though its excellent distribution network and strong brand…
GCB Bank: BankingOBGplus
THE COMPANY: Ghana’s second-largest bank by total assets, GCB Bank (GCB), operates the widest branch network in the country, with 150 branches and approximately 2000 employees. GCB is listed on the Ghana Stock Exchange, with the government of Ghana holding a 21.4% stake. GCB has maintained a strong market leadership position despite intense competition in Ghana’s banking industry over the last decade, which has witnessed steady decline in the market share of top banks. GCB’s total assets in 2012 grew by 21% from the previous year; growth in assets has continued during the first half of 2013 to GHS3bn ($1.54bn) as at the end of June 2013.…
Ghana Oil Company: EnergyOBGplus
THE COMPANY: Ghana Oil Company (GOIL) is a public company, listed on the Ghana Stock Exchange, controlled by the government of Ghana with a 51.1% stake. GOIL is one of the “big three” oil and gas marketing companies in Ghana. The company’s product offering includes the marketing of gasoline, gasoil, liquefied petroleum gas (LPG), lubricants, bitumen and speciality products. GOIL has maintained its dominance in the industry through an extensive distribution platform spanning over 220 outlets. In 2012 GOIL sold a combined liquid fuel and LPG volume of 457m litres, representing a 12% share of the market. The company currently holds the…
Guinness Ghana Breweries: Consumer goodsOBGplus
THE COMPANY: Guinness Ghana Breweries (GGBL) was formed through a merger between Guinness Ghana and Ghana Breweries (formerly a subsidiary of Heineken Ghanaian Holdings) in 2004. It is Ghana’s largest brewer, with a market share in excess of 60%. The company is ultimately controlled by Diageo, with a 52% stake, in collaboration with Heineken International, which owns 20% of the issued shares. GGBL manufactures and distributes both alcoholic and non-alcoholic beverages. GGBL targets the midto high-end of the market, with its product portfolio ranging from spirits, stouts, lagers and non-alcoholic malt beverages. Some of the company’s most…
UT Bank: BankingOBGplus
THE COMPANY: Formerly called UT Financial Services, UT Bank (UTB) commenced operations as a finance house in 1997. UTB evolved from a lending institution to a universal bank through the acquisition by its parent of BPI Bank in 2010 and its subsequent merger with the acquired entity. Listed on the Ghana Stock Exchange, UTB operates through a 26-branch network with over 600 employees. UTB met the minimum capital requirement of GHS60m ($30.8m) set by the Bank of Ghana in July 2012 through a private placement that increased its stated capital to GHS85m ($43.7m). The private placement saw the German Investment and Development Corporation (DEG),…
