SEC wants specific companies listed as a national policy

The Director General of the Securities and Exchange Commission (SEC), Dr Adu Anane Antwi, has proposed a national policy that will require companies operating in specified sectors of the economy to float part of their shares on the Ghana Stock Exchange (GSE) after five years of operations.

He mentioned the banking, insurance, mining, telecommunications and the manufacturing sectors as some of the industries that must be targeted by such regulations.

This policy, he said, would ensure that multinational companies operating in the country would not repatriate all their dividends declared outside the country, but invest part in the economy.

Speaking at the listing ceremony of Meridian-Marshalls Holdings (MMH) on the Ghana Alternative Exchange (GAX) of the GSE, Dr Antwi said investing in the economy would improve the strength of the local currency against the major foreign currencies.

Contribution of SME

He noted that the Small and Medium Enterprises (SME) sector was key in the production of goods and services, which contributed significantly to the country’s Gross Domestic Product (GDP).

Official figures from the 2013, Banking Survey Report prepared by PWC indicate that about 90 per cent of companies registered in the country were SMEs and the sector contributed about 49 per cent of Ghana’s GDP in 2012.

But the SME sector, according to Dr Antwi, faces many challenges, with the most pressing one being access to finance.

“SMEs receive limited short-term financing at high cost from banks and this is not adequate to sustain their long-term growth,” he said.

He appealed to entrepreneurs in the country to learn to own businesses with others to enable them to grow their businesses beyond the capital they could personally provide.

Listing of MMH

Shares of the company started trading on the GAX after the successful completion of the initial public offer (IPO) in which it raised GH¢1.4 million instead of the GH¢2.5 million it sought to raise.

Cal Brokerage Limited, the official brokers for the MMH, did the first trading on the stock market at 10,000 shares at GH¢0.11, indicating a pesewa gain on the stock market.

Use for Funds 

The President of the Meridian Pre-University and Marshalls University College, Dr Tetteh Nettey, explained that the funds raised from the listing would be used for the expansion and delivery of innovative and world-class education.

He said the institution started eight years ago with 20 students, but over 4,000 students have successfully graduated since then, most of whom have gained admission into both public and private universities in Ghana and abroad.

According to him, the Marshalls University College was also established, following the success of the Meridian Pre-University, to bring quality and world class teaching and learning standards onto the educational landscape in Africa.

“Marshalls, with accreditation from the National Accreditation Board, was created to provide quality, practical and affordable tertiary education for deserving students,” he added.

He said the MMH intended to strengthen its role as a diversified provider of career-oriented post-secondary education by continuing to pursue growth strategies, including the expansion of its existing facilities, programmes, faculties, as well as its Information Technology and other infrastructure.

He said the institution had also acquired land in excess of 100 acres at Akosombo for the expansion of the Marshalls College and for the construction of an ultra-modern educational complex.

The Managing Director of the GSE, Mr Kofi Yamoah, commended the MMH for taking a bold step to access the GAX facility, which encourages SMEs to list their companies under the GSE for their sustained growth.

He recounted instances where many businesses folded up after the demise of their founders owing to poor management practices, lack of discipline, transparency and reduced capital.GB

Writers email: kwofimaclean@gmail.com