Mensah Thompson Calls for Ghana to Shift From Traditional Market Financing to Capital Financing

Mensah Thompson Esq., Deputy Director-General of the Securities and Exchange Commission (SEC), has called for a change in Ghana’s approach to financing economic development, urging the country to move away from excessive dependence on traditional market financing towards greater use of capital financing.

Thompson’s remarks highlight the need to strengthen Ghana’s capital market as an alternative source of funding for businesses, infrastructure projects and other productive activities. His position suggests that diversifying financing options could help the country mobilise more long-term domestic investment and reduce pressure on conventional funding sources.

Traditional market financing often relies on established channels such as commercial bank lending and short-term borrowing. While these sources remain important, they may not always provide the long-term funding required for major infrastructure projects, industrial expansion and business growth.

Capital market financing, by contrast, enables companies and institutions to raise funds by issuing shares, bonds and other investment instruments. It can connect businesses and public-sector entities with investors seeking opportunities to earn returns while supporting economic activity.

For Ghana, developing this financing model could create opportunities for businesses to access capital beyond conventional bank loans. Companies could raise funds through equity offerings, while eligible public and private entities could issue bonds to finance projects with longer repayment periods.

A stronger capital market could also encourage greater participation by pension funds, institutional investors and individual savers. With appropriate safeguards, these investments could help channel domestic savings into productive sectors of the economy.

However, expanding capital financing would require sustained efforts to build investor confidence, strengthen corporate governance, improve financial disclosure and ensure effective regulation. Investors must have access to reliable information and protection against misconduct if the market is to attract wider participation.

Financial literacy is also important, as potential investors need to understand the risks and returns associated with different investment products. Meanwhile, businesses seeking capital must demonstrate transparency and sound financial management to attract funding.

The Securities and Exchange Commission plays a key role in regulating Ghana’s capital market and protecting investors. Thompson’s call places renewed attention on how the market can contribute more significantly to financing national development.

Further details about the specific proposals behind his remarks would be needed to establish the measures he is advocating. Nevertheless, the central message is the importance of diversifying Ghana’s financing sources and strengthening capital markets to support sustainable economic growth.

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