The Securities and Exchange Commission (SEC) has unveiled a comprehensive five-year strategic plan, a key component of the 10-year Capital Market Master Plan (CMMP), aimed at significantly deepening and expanding Ghana’s capital market.
The strategic plan, announced by SEC Director-General Daniel Ogbamey-Tetteh at the 2023 Ghana Capital Market Conference, outlines 60 initiatives designed to catalyze transformation within the sector.
“We have completed our five-year strategic plan with the financial support of FSD Africa/FCDO. This plan, with its five goals and 60 initiatives, will drive our vision to become a top-tier African securities regulator,” SEC Director-General Daniel Ogbamey-Tetteh said in his keynote address.
The main goal of the strategy is to increase the depth and diversity of Ghana’s capital market environment while strengthening its ability to withstand shocks from without.
“Today’s rapidly shifting financial terrain brings unique trials. Our markets must innovate, develop more versatile investment products and, ultimately, prove more robust in the face of adversity,” SEC’s chief explained.
Increasing institutional capacity, adopting next-generation technology, and implementing sustainable finance principles are essential components of this agenda.
“We are adopting cutting-edge RegTech and SupTech solutions to support financial innovation while safeguarding market integrity, and we recognise the critical role sustainability now plays in shaping the capital market’s future,” Ogbamey-Tetteh added.
The SEC’s emphasis on sustainability aligns with intensifying global urgency around ethical, accountable investment practices. As the Director-General puts it: “By collaborating with other regulators to incorporate ESG standards across Ghana’s financial ecosystem, we aim to cultivate an environment wherein such values flourish.”
“From large-scale educational campaigns to grassroots programmes, we strive at empowering all Ghanaians to fully leverage our capital market,” Ogbamey-Tetteh explained.
In his closing remarks, Mr. Ogbamey-Tetteh highlighted the regulator’s noteworthy accomplishments during the course of its 25-year nurturing of Ghana’s securities ecosystem, including the raising of over GH¢30 billion for business growth and a robust expansion within asset management.
“Despite recent strains on investor confidence, our markets continue gaining force,” said Ogbamey-Tetteh, adding: “With indices recovering, funds under management rising and game-changing innovations in the works, the stage is set for our Strategic Plan to unlock immense possibilities.”
Integral partner in economic growth
Speaking at the conference as well, Finance Minister Ken Ofori-Atta praised the SEC’s crucial role in enabling capital allocation and broad-based prosperity, emphasizing the importance of a transparent and well-regulated financial sector for economic growth, job creation, and the general welfare of citizens.
Even though Mr. Ofori-Atta acknowledged the severity of the recent economic constraints, he expressed optimism about the economy’s growth trajectory.
“Our macroeconomic indicators point to a new beginning – with rebounding growth, exchange rate stability restoring confidence, and declining interest rates,” he noted.
The finance minister, who was a trailblazer in the country’s capital market, also highlighted policy goals found in the national budget for 2023 that create an environment conducive to market growth.
“We are intentional about safeguarding recent progress, expanding real-sector investments, completing infrastructural projects and mobilising climate financing to build resilient, sustainable growth,” he explained.
Even though the market is growing relatively, the minister pointed out that there are still a lot of unexplored opportunities for growth. The capitalization of the most developed capital markets is more than 100% of GDP, and in certain cases, it is even 200 percent. With a market value of roughly GH¢70 billion, the Ghana Stock Exchange accounts for just 7% of the country’s GDP.
Capital markets to power infrastructure, sustainability
In light of the securities industry’s exceptional ability to fund national priorities, Mr. Ofori-Atta highlighted capital market instruments that direct investment toward housing, urban development, and ecologically conscious projects.
“Real Estate Investment Trusts (REITs) can massively boost infrastructure and housing project funding,” he noted, citing innovative vehicles like green bonds that direct capital into sustainable objectives.
“The SEC’s efforts here will prove integral as we strive to uplift millions through resilient, climate-conscious growth,” he stated.
“Ultimately, fulfilling the SEC’s broad mandate with adaptability and vision can profoundly impact Ghana’s long-term prosperity,” he said. “By rising to today’s tests, Ghana’s capital markets can help power us through an economically, socially and environmentally pivotal period in our history.”
By promoting coordinated efforts, financial inclusion, transparency and sustainable development, the finance minister said the SEC strategic plan’s success holds revolutionary implications for Ghana’s stability and global leadership.
“The time is now to cement the nation’s securities ecosystem as an engine of equitable progress and widespread opportunity. The tasks ahead are demanding, yet through diligence, determination and true public-private partnership, I’m confident we can realise our grand ambitions and help citizens nationwide feel genuine, grounded hope regarding Ghana’s future,” he concluded.