The Director General of the Securities and Exchange Commission, SEC, Dr. Adu Anane Antwi has reiterated the need for multinationals to list on the Ghana Stock Exchange (GSE).
He argues among other things that the move will benefit the country as economic challenges such as foreign exchange losses could largely be addressed.
The Commission has been pushing that multinational companies as part of their agreements, be made to list on the GSE in order for citizens to benefit from the huge profits and returns accruing to them.
The SEC’s renewed calls follows reports that Nigeria’s legislature is to pass a law that will compel multinationals to list a substantial part of their operations on the Nigerian Stock Exchange (NSE).
Dr. Adu Anane Antwi speaking to an accra based radio station described Nigeria’s decision as timely which should compel Ghana to facilitate processes to embark on a similar drive.
“I think that this is a great thing that Nigeria has done and I have said that one of the challenges that we face even with our currency is the amount of dividends that flows out of the country every year. If we get some of these companies list part of their shares on the Ghana Stock Exchange, at least part of the foreign exchange that they take every year in terms of dividends will remain here and that should help us manage our foreign exchange value and rate,” he stated.
The SEC boss added, “Nigeria is doing something great and I think that we have to learn from them. This is all that I have been talking about all these years. People said do not use the law but I think that Nigeria has gone the extra mile to use the law to ensure that the local people also benefit.”
Nigeria’s case
Speaking to CNBC Africa on the latest decision, Speaker of Nigeria’s House of Representatives Yakubu Dogara explained that the legislation will help the country deepen the capital market through legislation.
According to him, previous methods adopted in deepening the market have been unsuccessful hence the need to revise its strategy.
“We will ensure that at least most of these companies who are making profits in Nigeria list on the market. The situation where they are cultivating all the margins and making unreasonable profits in Nigeria and wealth that doesn’t circulate with our citizens has to be discouraged and that is what we will do as a responsible government,” Yakubu Dogara stated.
Capital market to grow with multinationals listing on GSE
Dr. Adu Anane Antwi further added that there is the need to develop Ghana’s stock market if lawmakers consider such concerns and work towards attaining them.
“The stock market needs to be developed and if we have used all means to get people to list on the GSE and if Nigeria has gone the extra mile, then we need to reconsider.”
“I believe that with the law, Nigeria should be able to enforce it and once they are able to do that other West African markets will follow suit,” he added.