President John Mahama has given the strongest indication yet that loss-making State Owned Enterprises (SOEs) will not be tolerated under his watch.

“They’ll strictly be reformed, merged, privatised or shut down,” he said at a meeting with Chief Executives Officers of specific SOEs in Accra yesterday.

The meeting comes on the back of revelations that SOE debts cross GH¢200 billion with the COCOBOD and the ECG leading the pack.

According to President Mahama, “the era of impunity, mediocrity and financial recklessness must end today. It is not going to be business as usual. We are going to reset your entities”.

The 2023 state ownership report by State Interest and Governance Authority (SIGA), he said revealed that inefficiency was affecting many SOEs, a situation which demanded that authorities acted with conviction and courage to tackle the systemic challenges confronting the enterprises.

He noted that the many inefficiencies had left the SOEs burdened by waste, underperformance, conflict of interest, and a complete detachment from national interest.

“Many of our SOEs have been used as mere instruments for generating personal wealth for persons appointed to positions within the entity. Those responsible for these situations are the chief executives, the management and the management boards of these enterprises,” he pointed out.

In the estimation of President Mahama, many of the entities were at their “lowest ebb” in the history of the fourth republic and one of the reasons he was elected was to fix them; a charge he was determined to keep.

“My vision for reform is clear. It is anchored on performance, accountability and national interest. Under my leadership, specified entities will be reformed into engines of growth aligning with our goal of a 24-hour economy that expands job opportunities and drives industrialisation,” he stressed.

At the heart of the reform, he said would be the SIGA which would evolve from a passive observer into an empowered enforcer of national interest.

Key among SIGA’s new focus would be to negotiate and enforce performance contract, conduct regular in-depth assessment of SOE finances, ensure accountability, issue binding directives, implement compliance mechanisms, intervene in underperforming entities, commission audits to identify inefficiencies and financial leakages and set and monitor performance metrics.

He said corruption, procurement fraud and financial mismanagement would be prosecuted strictly and boards that rubber stamp poor decisions would be replaced without delay.

“We appointed you because we have confidence in you and we expect that each of you will live with professionalism and urgency to fulfill your mandates to operate your entities as competitive businesses and not political offices,” President Mahama charged.

The Finance Minister, Dr Cassiel Ato Baah Forson, said the loss-making SOEs posed a risk to the economy and that a turn-around strategy was needed to return the enterprises to profit-making.

The strategies, he said would include capacity building, enhancement of corporate governance training, and financial discipline.

He assured that his outfit would work with the SIGA to ensure compliance at the various SOEs.

Dr Michael Kpessah Whyte, the Acting Director-General of the SIGA, said the Authority was ready to undertake its mandate to help reform the SOEs into profit-making entities.

BY JULIUS YAO PETETSI

John Jinapor in a group photo with the committee

The Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, has inaugurated a five-member committee to investigate issues arising from the flooding caused by the spillage of the Akosombo Dam in September 2023.

This initiative underscores the government’s commitment to managing the environmental impact and ensuring the safety and well-being of affected communities.

The committee, chaired by Ing. Kirk Koffi, has been tasked with examining the events leading to the spillage, assessing the extent of the response to the flooding, identifying affected areas and challenges encountered during the process, and evaluating the strategies adopted to address the impact.

Additionally, both immediate and long-term measures are expected to be recommended to prevent similar occurrences in the future.

During the inauguration, Jinapor emphasised the importance of a coordinated response to mitigate the effects of the flooding on affected individuals. “If there ought to be compensation, how does the government go about it?” he quizzed.

He highlighted the need for sustainable planning and flood management strategies and urged key stakeholders, including local government officials, community leaders, and environmental experts, to provide the committee with relevant information to aid its work.

Jinapor further assured the committee of his full support in carrying out its assignment effectively. In response, the committee chair, Ing. Kirk Koffi, expressed gratitude for the opportunity to undertake such a crucial task and assured the minister of their commitment to delivering on their mandate.

Other committee members include Kwame Jantuah, Ing. Kofi Ellis, Ing. Kwaku Akosa, and Ms. Georgette Emefa Fugah, Esq. (secretary).

The inauguration of the committee reflects a proactive government approach to addressing the challenges of flooding, demonstrating a commitment to improving the living conditions of victims and ensuring community protection.

The committee has been given a period of one month to complete its work.

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By Iddi Yire

Accra, March 13, GNA – President John Dramani Mahama has in accordance with Articles 91 and 202 of the 1992 constitution and in consultation with the Council of State, appointed Commissioner of Police (COP) Christian Tetteh Yohunu as the Inspector-General of Police.

He replaces COP Dr George Akuffo Dampare.

A statement issued by Mr Felix Kwakye Ofosu Presidential Spokesman and Minister of State in-charge of Government Communications, said COP Yohunu brings 40 years of experience to the position of IGP and was expected to oversee the modernization and transformation of the Ghana Police Service.

The new IGP is expected to be sworn into office by the President on Friday, March 14.

GNA

GRB

The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, as part of a planned and sustained effort to familiarise himself with the operations of the Commission across the country, embarked on his first Regional Tour in the Upper West Region.

During his visit, Dr Suleman paid a courtesy call on the Upper West Regional Minister, Charles Lwanga Puozuing, to officially inform the Minister, who doubles as the chairman of the Regional Security Council (REGSEC), of the presence of the Executive Secretary in the Region.

Dr Suleman explained the purpose of the visit, indicating that, as part of the mandate of the Commission, he must engage all stakeholders across the utility value chain to appreciate better, the challenges existing in their operations and to tailor appropriate solutions towards resolving them, citing the Regional Tours as the best opportunity to assess some of these challenges.

Dr. Suleman urged the Minister to fall on the Commission without hesitation whenever the Region encounters challenges in the water and electricity service sectors.

The Upper West Regional Minister on his part, welcomed the entire PURC team and expressed his joy and gratitude for making Upper West the first choice of such an institutional tour: “You and your team are always welcome to Upper West; it is your home and remains your home”

Puozuing pleaded with the PURC team to, as a matter of urgency, help resolve some;

 recurring intermittencies of power outages and no water flow without prior notice;

 power outages and fluctuations on the main Wa–Burkina Faso distribution line which causes outages to several communities along the way and critical facilities, such as the Wa Teaching Hospital.

The Minister suggested that a dedicated line and transformer should be assigned to the hospital due to the critical nature of the services they provide within and outside the region.

The Executive Secretary of PURC was accompanied by Alhaji Jabaru Abukari, Director for Regional Operations and Consumer Services; Dr. Eric Kofi Obutey, Director for Research and Corporate Affairs; Mr. Edmond Kweku Tuffour, Deputy Director, Regional Operations and Consumer Services responsible for the Northern Zone; Dr. Robert Tia Abdulai Aziz. Head of Corporate Affairs; Reginald Osei Asibey, Finsnce Officer and Ms. Fauzia Tanko, the Secretary to the Executive Secretary.

The Upper West Regional team of PURC, comprising Mr. Ali Abdul Wadud, Regional Manager; Amin Bashiru Nuhu, Regional Public Relations and External Affairs Officer; Bilal Alhassan Pelpuo, Complaints Officer; Mrs. Zenabu Gyamfi, Administrative Officer; and Mr. Yussif Belko Mumuni, Transport Officer were all present to assist in the success of the Executive Secretary’s tour of the region.

The 2025 Budget Speech delivered by Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, brings to light the critical challenges facing the country’s energy sector and outlines various measures to address them.

As Ghana struggles with rising debt, inefficiencies, and high energy costs, the government’s proposed interventions aim to restore financial stability, enhance efficiency, and ensure long-term sustainability. However, these measures present both opportunities and challenges that require careful consideration.

One of the major challenges confronting Ghana’s energy sector is the growing financing shortfall. In 2024, the government allocated GH¢20.8 billion to support the sector—funds that could have been used for critical development projects such as infrastructure, healthcare, and education. Looking ahead, the financing shortfall is projected to increase to GH¢35 billion in 2025, with an estimated total deficit of GH¢140 billion for the period 2023–2026. Additionally, the government remains burdened with legacy arrears owed to Independent Power Producers (IPPs), which stood at US$1.73 billion by the end of 2024.

Inefficiencies in the energy sector further compound the crisis. Poor revenue collection, unsustainable contracts with IPPs, and high operational costs have left major institutions such as the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) in financial distress. ECG alone owes GH¢68 billion, underscoring the urgent need for reform.

The high cost of energy production is another pressing issue. Ghana remains heavily reliant on expensive liquid fuels rather than cheaper natural gas sources, leading to inflated electricity costs. The Weighted Average Cost of Gas (WACOG) is expected to rise from $7.83 per MMBtu to $8.45, further increasing the financial burden on consumers and businesses.

Another significant challenge is the discontinuation of energy projects due to debt restructuring. Fifty-five energy-related projects remain delayed, with US$3 billion in undisbursed loans and US$300 million in outstanding interim payment certificates. Given the IMF-imposed annual disbursement ceiling of US$250 million for bilateral loans, it could take more than a decade to complete these projects, potentially hindering economic growth and worsening energy shortages.

To tackle these challenges, the government has introduced the Energy Sector Recovery Programme (ESRP). This initiative focuses on reducing financial shortfalls, enhancing efficiency, and stabilizing the sector. Key measures include increasing private sector participation (PSP) in electricity distribution to improve revenue collection, transitioning from liquid fuels to gas to reduce energy production costs, and renegotiating IPP contracts to lower fixed capacity charges and variable operation and maintenance (O&M) costs.

Tariff adjustments also form a crucial part of the government’s strategy. The Public Utilities Regulatory Commission (PURC) will continue to implement quarterly tariff reviews to reflect inflation, exchange rate fluctuations, and generation costs. A major tariff hike is scheduled for the fourth quarter of 2025 to accommodate additional capacity charges, increased fuel costs, and capital expenditures.

Debt management and fiscal discipline are also central to the government’s approach. Strict enforcement of the Public Financial Management Act is expected to prevent further arrears accumulation, and an audit of arrears will be conducted to ensure payments are made only for verified debts.

In addition, the government plans to consolidate various energy sector levies under the Energy Sector Levies Act (ESLA). This will merge existing levies such as the Energy Debt Recovery Levy and the Sanitation & Pollution Levy into a single levy, with proceeds directed toward addressing financial shortfalls and servicing legacy debt obligations.

Lastly, infrastructure development remains a priority under the government’s $10 billion “Big Push” initiative. This program includes investments in energy-related infrastructure to support the country’s 24-Hour Economy policy, which aims to expand economic opportunities by ensuring reliable electricity supply.

The government’s proposed solutions offer several potential benefits. The transition from liquid fuels to natural gas is a positive step toward reducing production costs and enhancing sector efficiency. If successfully implemented, these measures could alleviate the financial burden on the government while ensuring a more stable energy supply.

The inclusion of private sector participation in electricity distribution also has the potential to improve revenue collection and minimize losses at ECG and NEDCo. With greater financial sustainability, these entities can provide better services to consumers.

Furthermore, the government’s commitment to fiscal discipline through audits and value-for-money measures could help curb unnecessary expenditures and enhance accountability in the energy sector. This approach may prevent further debt accumulation and ensure resources are used efficiently.

Despite the potential benefits, the government’s plan also presents several challenges. One major concern is the high reliance on tariff adjustments. Frequent increases in electricity tariffs, while necessary for financial stability, could face public resistance and negatively impact consumers, particularly low-income households. The government must carefully manage these adjustments and provide targeted subsidies or social safety nets to protect vulnerable populations.

Additionally, the delayed implementation of energy projects remains a significant challenge. With only US$250 million available annually for disbursements, completing stalled projects could take over a decade. These delays may slow down economic progress and lead to persistent energy shortages, hampering business growth and industrialization.

Another notable gap in the budget is the limited focus on renewable energy. While the government has prioritized efficiency improvements and a shift to natural gas, there is little emphasis on investments in renewable energy sources such as solar, wind, and hydro. A diversified energy mix that includes renewables would enhance long-term energy security and reduce Ghana’s vulnerability to global energy price fluctuations.

Over-reliance on natural gas also poses risks, as fluctuations in global gas prices could affect Ghana’s energy costs. A balanced approach that integrates renewable energy alongside gas would provide greater resilience against market uncertainties.

Lastly, the budget’s focus on fiscal consolidation and spending cuts could reduce funding for social programs. If not managed carefully, this could exacerbate poverty and inequality, undermining the broader goals of economic development and social stability.

Conclusion

The 2025 Budget presents a well-structured approach to addressing Ghana’s energy sector challenges, with a strong emphasis on cost reduction, efficiency improvements, and financial discipline. Key interventions, such as the Liquid Fuel-to-Gas Swap, IPP contract renegotiations, and private sector participation, have the potential to improve the sector’s financial health and ensure long-term sustainability.

However, the government must also address critical gaps, including the need for increased investment in renewable energy, strategies to mitigate the social impact of tariff hikes, and measures to accelerate the completion of stalled projects. Transparent implementation, public engagement, and a balanced approach between fiscal prudence and social equity will be crucial for the success of these initiatives.

Overall, while the budget outlines important steps toward stabilizing Ghana’s energy sector, its effectiveness will depend on the government’s ability to implement these measures efficiently and equitably, ensuring that both economic growth and social welfare are prioritized.

The writer is an upcoming Energy economist in London, United Kingdom.

E-mail:  [email protected] Contact: +233 57 397 8117

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Yesterday March 13, 2025, the President of Ghana, John Dramani Mahama appointed a new Inspector General of Police (IGP). The new IGP is Commissioner of Police Christian Tetteh Yohuno. Sworn into office Friday March 14, 2025, he replaces Dr George Akuffo Dampare.

Taking office at 60 years old, Mr Yohuno was born on December 27, 1965. He joined the Ghana Police Service in 1985.

Until his appointment, he has been serving as Deputy Inspector-General of Police in charge of Operations since July 2024.

Education

Mr Yohuno attended the Presbyterian Boys’ Secondary School, where he obtained the GCE Ordinary and Advanced Level certificates. He earned an Intermediate Chartered Accountant certification from the Institute of Professional Studies in Legon (Now UPSA). He later went to the University of Ghana and graduated with a Bachelor of Science degree in Administration (Human Resources Management). He also holds an Executive MBA in Project Management from the UPSA.  

His career in the police service

He joined the Ghana Police Service in 1985 as a recruit. Over the years he rose through the ranks. He became a member of the Police Management Board, where he held responsibility for six critical portfolios at the Director-General level, including Administration, Special Duties, Motor Traffic and Transport, Police Intelligence Directorate, Special Operations, and General Operations.

He was the Accra Central Divisional Commander from 2007 to 2009, and at the same time he served as the Accra Regional Operations Commander. He was later appointed the Deputy Accra Regional Commander before being promoted to Regional Commander in 2013. 

Mr Yohuno also held the position of Regional Finance Officer.

In December 2015, he was appointed the Director-General of the Motor Transport and Traffic Department of the Ghana Police Service before being reassigned as Director-General of Administration in 2016.  

In 2011, he was awarded the Grand Medal for his meritorious service in combating armed robbery and other criminal activities in the country. He received a special promotion to Deputy Commissioner of Police (DCOP) in January 2012 and was later promoted to the position of Commissioner of Police (COP) on January 1, 2016.

He became the first Director-General of the Police Intelligence Directorate.

International engagements

He served on two United Nations peacekeeping missions in Bosnia and Herzegovina and East Timor.

By Emmanuel K Dogbevi

President John Dramani Mahama

President John Dramani Mahama has issued a strong directive for a comprehensive reset of Specified Entities (SEs) under the State Interests and Governance Authority (SIGA) as part of efforts to drive national transformation and economic efficiency.

Speaking at a high-level meeting with the heads of SEs on March 13, 2025 in Accra, President Mahama emphasised the urgent need to revamp State-Owned Enterprises (SOEs) and eliminate financial mismanagement.

He called on SOE leaders to take full responsibility for their institutions and deliver strategic value in key sectors, including energy, transport, manufacturing, agriculture, and finance, to support Ghana’s industrialization and 24-hour economy initiative.

“Loss-making SOEs will no longer be tolerated. They will be swiftly reformed, merged, privatized, or shut down,” President Mahama declared.

As part of efforts to enhance governance and accountability, President Mahama announced the introduction of a strict code of conduct for public officials.

He reiterated the obligation for CEOs of SOEs to declare their assets upon assuming office and upon exiting.

“The Director-General of SIGA has been tasked with ensuring compliance, while the Auditor-General has been directed to submit a list of those who have met this requirement by a specified deadline,” he added.

The President also warned that non-compliance would attract sanctions, including potential removal from office.

Under President Mahama’s leadership, SIGA is set to transition from a passive observer to an empowered regulatory body with executive authority to:

• Negotiate and enforce performance contracts with Specified Entities.

• Conduct regular in-depth financial assessments to promote transparency and expose mismanagement.

• Issue binding directives, implement compliance mechanisms, and intervene directly in under-performing entities.

• Commission independent audits to identify inefficiencies and financial leakages.

• Establish and monitor performance metrics with tangible consequences for under-performance.

Meanwhile, the Director-General of SIGA, Prof. Michael Kpessa-Whyte in his remarks reaffirmed the Authority’s commitment to good governance, transparency, and accountability.

He underscored the importance of treating good governance not only as a moral imperative but also as a business necessity.

“We are not here to dictate but to collaborate,” Prof. Kpessa-Whyte stated, emphasising SIGA’s partnership approach with SEs.

Kpessa-Whyte urged CEOs to take bold and decisive steps to transform their entities into models of efficiency and profitability.

He also highlighted that the principles of accountability and performance improvement would be central to the Performance Contract Negotiations with SEs for the 2026 Financial Year, set to be signed in December 2025.

The meeting was attended by key government and international stakeholders, including Deputy Chief of Staff for Operations, Nana Oye Bampoe Addo, Minister for Finance, Dr. Cassiel Ato Forson, and Taliercio O’Brien, World Bank Division Director for Ghana, Liberia, and Sierra Leone, alongside senior SIGA officials.

MA

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Ghana and Japan have formalized a $13.44 million grant agreement aimed at improving the stability and reliability of electricity supply in Tamale, the capital of the Northern Region.

The initiative is designed to address power challenges in the area by enhancing energy infrastructure, ensuring a more consistent supply for households, businesses, and essential services.

Finance Minister Dr. Cassiel Ato Forson, announcing the deal on his official Facebook page on Friday, March 14, 2025, described the partnership as a significant boost for Tamale’s electricity network.

The agreement was signed between the Government of Ghana and the Japan International Cooperation Agency (JICA) as part of ongoing bilateral efforts to support Ghana’s energy sector.

The project, funded by the grant, will involve the construction of a new power substation and the expansion of distribution lines, significantly strengthening Tamale’s energy infrastructure.

Dr. Forson signed on behalf of Ghana, while Her Excellency Suzuki Momoko, Chief Representative of JICA, represented the Government of Japan during the signing ceremony.

Dr. Forson emphasized that the initiative would play a crucial role in fostering economic growth, creating jobs, and improving living standards for residents of Tamale and surrounding communities.

“This project represents a major milestone in our commitment to economic development, job creation, and enhanced livelihoods in the Northern Region. By ensuring uninterrupted electricity supply, we are providing businesses, households, and critical services with the energy security they need to thrive,” Dr. Forson stated.

He further expressed Ghana’s gratitude for Japan’s continued support, noting that such collaborations are vital in bridging the country’s energy gaps and driving industrialization.

Once completed, the project is expected to significantly transform Tamale’s energy landscape, stimulating local businesses and improving the quality of life for residents.

Executive Chairman of the McDan Group, Daniel McKorley

Executive Chairman of the McDan Group, Daniel McKorley, has advised young people to prioritise financial stability before considering marriage.

Speaking at the 2025 PCH Hangouts event held at the ICGC ‘New Wine Temple’ in East Legon, McDan emphasised that marriage without financial readiness can be overwhelming and hinder personal growth.

“If you don’t have money, don’t marry. Marriage without money can derail you,” he stated.

Drawing from his own experiences, McDan narrated how he delayed marriage until later in life due to concerns about not having enough money to support it.

“I couldn’t marry early because I was afraid of ‘chop money.’ I grew up in an environment where you could see a man physically abusing a woman because of money, and a woman verbally abusing a man because of money.

“So, the institution of marriage was scary for me,” he confessed.

ID/EB

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President John Dramani Mahama has charged the newly appointed Inspector General of Police (IGP), Christian Tetteh Yohuno, with the critical responsibility of tackling Ghana’s evolving security threats.

He emphasised the necessity of adopting both traditional and modern policing strategies to enhance national safety and stability.

Speaking during the swearing-in ceremony on Friday, 14th March, President Mahama underscored the growing complexity of security challenges in the country.

He highlighted the increasing prevalence of cybercrime, fraud, and organised criminal activities, stressing the need for sophisticated investigative techniques to combat these threats effectively.

“Traditional security methods must be complemented with modern approaches to confront emerging crimes. We are witnessing a rise in violent incidents, cybercrime, and sophisticated fraud schemes, alongside new forms of organised crime that demand advanced investigative capabilities,” President Mahama stated.

The President also drew attention to global security concerns, particularly terrorism and transnational crime networks, which he described as major threats to national stability.

He stressed the importance of intelligence-led policing and proactive law enforcement in safeguarding the country.

“The global security landscape presents fresh challenges, from terrorism to transnational criminal organisations. These require robust intelligence gathering and proactive policing. The Ghanaian people expect their police service to provide the highest level of protection,” he noted.

IGP Yohuno’s appointment forms part of a broader restructuring initiative aimed at reinforcing Ghana’s law enforcement framework and enhancing public safety.

His tenure is expected to bring renewed focus to security reforms and crime prevention strategies across the country.

He replaces Dr George Akuffo Dampare, whose dismissal was officially confirmed on Thursday, 13th March.

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Dr. Cassiel Ato Forson, Minister of Finance and HE Suzuki Momoko, Chief Representative of JICA

The Minister of Finance has announced a new agreement between Ghana and Japan aimed at boosting the power supply in Tamale City.

Announcing the agreement on March 14, 2025, the minister stated that the $13.44 million deal would be used to support power generation.

He said, “Through this partnership, the Japan International Cooperation Agency (JICA) will support the construction of a new substation and power distribution lines, strengthening the region’s electricity infrastructure.”

The agreement was signed by Dr. Cassiel Ato Forson, Minister for Finance, on behalf of the Government of Ghana, and Her Excellency Suzuki Momoko, Chief Representative of JICA, on behalf of Japan.

In a Facebook post on March 14, 2025 the minister wrote, “This project is a major step towards economic development, job creation, and improved livelihoods in the Northern Region, ensuring businesses, households, and essential services have access to reliable electricity.

“This partnership reflects Japan’s continued commitment to supporting Ghana’s development. Once completed, the project will play a key role in bridging Ghana’s energy gap and boosting industrialisation,” he added.

SSD/MA

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Ghana and Japan have signed a $13.44 million grant agreement aimed at enhancing the stability of power supply in Tamale, the capital of the Northern Region.

Announcing the deal on his official Facebook page on Friday, March 14, 2025, Finance Minister Dr. Cassiel Ato Forson described the partnership as a “major boost for power supply in Tamale.”

The agreement, signed between the Government of Ghana and the Japan International Cooperation Agency (JICA), will fund the construction of a new substation and power distribution lines, significantly strengthening the region’s electricity infrastructure.

The signing ceremony was officiated by Dr. Forson on behalf of Ghana and Her Excellency Suzuki Momoko, Chief Representative of JICA, on behalf of Japan.

According to Dr. Forson, the project will contribute to economic growth, job creation, and improved livelihoods in Tamale and its surrounding areas.

“This project is a major step towards economic development, job creation, and improved livelihoods in the Northern Region, ensuring businesses, households, and essential services have access to reliable electricity,” he stated.

He further noted that Japan’s continued support for Ghana’s development is deeply appreciated, as this initiative will help bridge the country’s energy gap and drive industrialization.

Once completed, the project is expected to transform the energy landscape of Tamale, promoting business growth and enhancing daily life for residents.

You often hear business anchors and reporters say that the financial stock index has advanced by a few points or that the Ghana Stock Exchange (GSE) has recorded gains.

While these terms may sound technical, the key question is; why is the stock market making gains, and what exactly is being traded?

For those who may not fully understand, this GhanaWeb Business article provides deeper insights:

Overview of the Ghana Stock Exchange

The stock market in Ghana, primarily represented by the Ghana Stock Exchange (GSE), is a key component of the country’s financial system. It provides a platform for buying and selling securities, such as stocks, bonds, and government-issued securities.

Ghana’s financial sector is largely dominated by commercial banks, which have not been a reliable source of long-term financing.

As a result, the capital market is considered a better avenue for mobilizing both domestic and international capital, offering a potential solution to meet the private sector’s long-term financial needs.

Currently, 39 companies are listed on the Ghana Stock Exchange. These companies span various key sectors of the economy, including mining, brewing, banking, pharmaceuticals, oil, and manufacturing.

What is traded on the GSE?

Stocks (Equities): Represent ownership in listed companies. Investors buy shares to gain a stake in a company’s success and receive dividends.

Bonds: Debt securities issued by the government or companies. Buyers lend money to the issuer in exchange for periodic interest payments.

Government Securities: Bonds and other debt instruments issued by the government to raise funds.

Mutual Funds & ETFs: Investment products that pool investors’ money to invest in a diverse range of stocks and bonds.

How does stock trading work?

Listing of Companies: Companies looking to raise capital can list their shares on the GSE. This requires meeting strict criteria, including financial transparency and sound corporate governance.

Brokers and Dealers: Investors must trade through licensed brokers who act as intermediaries, ensuring that transactions comply with market regulations.

Market Orders & Limit Orders: Investors can place:
Market orders (buying/selling at the best available price).

Limit orders (setting a specific price at which they want to buy or sell).

Price determination

Supply and Demand: Stock prices are determined by the interaction between buyers and sellers. If demand for a stock increases, its price rises. Conversely, if more people want to sell a stock, its price falls.

Market indices

GSE Composite Index (GSE-CI): Tracks the performance of all listed stocks, offering a snapshot of the market’s overall health.

GSE Financial Stocks Index (GSE-FSI): Tracks the performance of financial sector stocks on the exchange.

Benefits of investing in the GSE

Capital Gains: Investors can earn profits by buying stocks at a lower price and selling at a higher price.

Dividend Income: Many companies on the GSE pay dividends, providing a steady income stream for shareholders.

Portfolio Diversification: The stock market allows investors to diversify their portfolios beyond traditional assets like real estate and savings accounts, reducing overall risk.

Conclusion

The Ghana Stock Exchange plays a crucial role in the country’s economy, enabling companies to raise capital and providing investors with opportunities to grow their wealth.

While challenges such as liquidity issues and low public participation persist, the market continues to evolve.

For those looking to invest, understanding the fundamentals of the stock market and seeking professional advice can help navigate its complexities effectively.

Nana Agyemang Prempeh is a Ghanaian brodcast journalist that specialises in business communication. 

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