Ghanaian companies urged to obtain finances on Alternative Market

Mr David Tetteh, a consultant to the Ghana Stock Exchange (GSE) on Friday urged Ghanaian companies to consider listing on the Ghana Alternative Market (GAX) to access funds for business expansion.

He said there was enough money for companies, who were willing to make their presence on the GAX platform through listing equity or debt securities due to boosted investor confidence.

Mr Tetteh was speaking at a training workshop for Journalists in agriculture reporting and sensitisation to alternative financing sources by the United States Agency for International Development Financing Ghanaian Agriculture Project (USAID FinGAP), in collaboration with the Institute of Financial and Economic Journalists (IFEJ).

The workshop had the objective of enhancing the capacity of Financial Journalists on the capital market to educate and inform the public on the numerous opportunities available for business securities.

He said no Ghanaian company should find it difficult to expand business operation because more investors were willing to support viable businesses through long-term finances.

The GAX is a capital market where businesses raise long-term finances for themselves to expand their operations and make funds readily available.

Mr Tetteh said some companies in the country are yet to take advantage of the funding source due to ignorance on the many benefits that are associated with the capital market.

He said the GAX platform offers easier access to long-term or permanent capital for business operation and expansion.

He said listing on the GAX platform would open up the company for mandatory underwriting of the minimum offer directly or indirectly by sponsors meaning, the sponsors of the listed company guarantees for it.

Mr Tetteh said since the commencement of the GAX in 2014, only four companies had listed so far saying, it did not speak well of the Ghanaian business environment.

The USAID FinGAP organised the training under its flagship programme of financing Ghanaian agriculture project as part of US Feed the Future strategy, which aims to establish commercially driven agricultural developments services, critical to sustainably, reduce food insecurity and poverty.

The USAID FinGAP said it is pursuing the development of alternative sources of financing for small, medium, including large enterprises, through the listing of debt or equity securities on the GAX. 

Source: GNA

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