In line with its goal to transition the local stock market from a frontier to a more robust emerging market, the Ghana Stock Exchange (“GSE”) has partnered with the Ghana Investment Promotion Centre (“GIPC”) to improve access to offshore capital, following the upward trajectory of inward remittances the country has experienced despite the economic disruptions caused by the COVID-19 pandemic.
According to the World Investment Report, foreign direct investment (FDI) inflows into Ghana grew by 39% in 2021 - the second highest in the West African sub-region. The partnership will include, among others, the introduction of new products and services which are expected to attract further investments from Ghanaians in the diaspora.
At present, the entire market capitalization of the Accra bourse stands at approximately US$8 billion (GHS63 billion), which is relatively small against GDP. The partnership is expected to remedy this problem.
If successful, the partnership between the GSE and the GIPC presents an opportunity to boost direct and portfolio investments in Ghana.