On 12 November 1990, the Ghana Stock Exchange held its first trading session in Accra. Only a small number of companies were listed, and trading was done by hand.
The exchange was incorporated in 1989 as part of economic reforms under the Rawlings government, which was moving away from state control of the economy toward private enterprise. A stock market would let companies raise money from the public and give Ghanaians a way to own shares.
Early years
The first listed companies were mostly long-established firms in consumer goods, brewing and manufacturing. Trading was limited, and many Ghanaians did not understand shares. Over the 1990s, privatisations brought new listings, including Ashanti Goldfields, whose shares were also listed in London.
Growth
Today the GSE lists banks, insurance companies, manufacturers, oil companies and telecoms. The listing of MTN Ghana in 2018 was one of the largest, drawing many first-time investors. Trading is now electronic, and prices are published daily.
The exchange’s main index, the GSE Composite Index, tracks the overall market.
How to invest
To buy shares, investors open an account with a licensed brokerage firm, which buys and sells on their behalf. The Central Securities Depository keeps records of ownership. Investors can earn from dividends and from rising share prices. Shareholders can attend annual general meetings and question the board. The Securities and Exchange Commission regulates brokers, fund managers and listed companies.
Many Ghanaians invest through mutual funds and unit trusts, which pool money and buy a range of shares and bonds.
Risks
Share prices can fall as well as rise. The Ghanaian market has had strong years and weak ones, affected by inflation, interest rates and the cedi. Investors should spread their money and invest for the long term.
Challenges
The GSE is small compared with exchanges in South Africa, Nigeria or Kenya. Trading volumes are low, and many large companies in Ghana are not listed. High interest rates on government bonds have often made shares less attractive.
The Ghana Alternative Market
In 2013, the GSE launched the Ghana Alternative Market, designed for smaller and growing companies with lighter listing requirements.
The first session in 1990 was a quiet affair in a city more used to cocoa and gold than share certificates. Today, the prices flash on screens across Accra, and a student can buy shares from a phone.
