Restore People’s Confidence In Investment; Asantehene Counsels SEC
The occupant of the Golden Stool, Otumfuo Osei Tutu II, has formulated an easy path to increasing investment among domestic and international investors in the country.
During a visit by the Securities and Exchange Commission (SEC), he said a lot of people still prefer to keep their monies in their homes than invest due to dissipated confidence in investment as a result of the government’s recent Debt Exchange Programme.
Asantehene, therefore, counselled the Commission to find a way in restoring that lost confidence and also attract unconventional investors as well.
“Due to the recent {Domestic Debt Exchange Programme}, I guess confidence in investment is lost. You must focus on restoring that confidence. How will people trust that their investments and returns will be safe? These days people keep their monies in their rooms. It all boils down to confidence.”
His Majesty said this when a delegation from the Commission paid a working visit to the Manhyia Palace on Friday, July 7, 2023.
The delegation included Dr Yeboa Amoa, the Board Chairman; Rev Daniel Ogbarmey Tetteh, the Director-General; Mrs Deborah Agyemfra, a Deputy Director-General; Mr Paul Ababio, a Deputy Director-General; Mr Augustine Addo, a Commissioner; Mrs Jemima Oware, a commissioner; Prof Joe Amoako Tuffour, a commissioner and Mr Yaw Acheampong Boafo, a commissioner.
Also present were Mrs Tucci Ivowi Goka, the Managing Director of Ghana Commodity Exchange; Ms Evelyn Essien, the Director of SEC Commissioner; Mr Robert Owoo, the Chief operating officer of Ghana Commodity Exchange and others.
Challenges
Updating the King about the Commission, Director-General Daniel Ogbarmey Tetteh said the Commission has seen a lot of growth in the past ten years since its inauguration but faces challenges including low patronage.
“The Ghana Stock Exchange has had a bit of a challenge in terms of new companies being enlisted.”
In dealing with this, he said the Commission is “working with the government to see how we can get a few more State-owned enterprises to the list. We are also having a programme to attract a few of the good private companies.”
Additionally, he said the dominance of the ponzi schemes is a challenge.
“There are a lot of Ponzi schemes of fraudulent operations around and because of the low level of investor literacy, people fall prey and so we are working hard on improving financial literacy and we would like to encourage people to ask questions rather than following all those attractive and enticing offerings.”
He also said their Office is open to the public for verification of investment companies’ status.
Capital Market Master Plan
Rev Ogbarmey Tetteh further told Otumfuo his outfit has a ten-year plan called the Capital Market Master Plan to create a deep, efficient, diversified and well-regulated market with a full range of products that is attractive to both domestic and international investors.
“There are four main pillars under the Capital Market Master Plan- increasing the diversity of the investment product and market liquidity; increasing the investor base; improving the market infrastructure and services; and improving enforcement, regulation and investor confidence.”
Strengthening Operation
In strengthening the operation of the Commission, he said they have modified their supervisory role to risk-based supervision as a way of being proactive.
Additionally, he said his outfit is strengthening oversight, digitalizing their operation; and planning to decentralize their operation across the country.
