Foreign companies must get listed

In spite of efforts by the government to expand the capital market, very little achievement has been made.  Ama Amankwah Baafi reports.

The Director-General of the Securities and Exchange Commission (SEC), Mr Adu Anane Antwi, has advocated laws that will enjoin foreign companies, particularly those in the extractive and renewable sectors to invest in the country to offload a portion of their stake on the Ghana Stock Exchange (GSE).

He said such a move would  not only help in expanding the capital market but also offer Ghanaians the opportunity not only to be a part of such companies but also share in the natural resources of the country.

Mr Antwi made the call in an interview meant to expatiate on views raised on the issue during his presentation at the third Graphic Business Forum held in Accra on the theme “Leveraging ICT and Oil and Gas Resources to accelerate Ghana’s Economic Development”..

The forum, which attracted economists, members from the academia, policy makers and a cross-section of the public was meant to offer a platform for promoting vibrant policy discourse on issues that promote Ghana's economic development.

It was also provide an avenue to interact and discuss critical issues that impact on the country’s socio economic development.

The forum which attracted more than 400 participants was had the support and partnership from  Vodafone, International Marine and Protective Coating and UT Bank. The media partners were Metro TV and Citi FM.

Mr Antwi explained that the call for a law will not in any way drive deter investors from investing in the country’s economy as being predicted by some people.

He said their proposal is aimed at creating opportunities for Ghanaians to share in all the economic activities that are taking place.

“Apart from developing the capital market, it is also to make sure that Ghanaians are holding part of these companies. We don’t want to develop leaving some people behind. When everybody is involved then they will know what is happening in the country and this will create an impact on them,” he said.

He stated that currently most regulatory laws require companies to have a Ghanaian component before they are issued licenses. “The same laws can be changed to a public component and I don’t think it will deter investors”.

“If you go to the Ghana Investment Promotion Council there are many of these rules there. What is happening is that you may have one or two Ghanaians who are taking part of that component”, Mr Antwi said.

The SEC Boss said; “If they say that it is a public company, it doesn’t change anything, except that now it’s not held by only one or two Ghanaians, but includes it for every Ghanaian who is interested to be roped in and I am not sure that is going to drive anybody away.”    

Again, he said it is important that when corporations want to operate in an environment and they want people to be part of it, a better way is to make sure that the people have a stake in that operation. 

“When given that opportunity Ghanaians will feel like they are part of the corporation that lists. You will have more likeness than when somebody thinks that you have come from outside and are just taking our money,” Mr Antwi said.   

He explained that Ghana, unlike countries such as South Africa and Zimbabwe is not attempting to nationalize all things.

“We are not saying give your companies back. We are saying that just float a little of your investment for Ghanaians to own it for them to be proud that you have come to stay and that they are part of your operations,” he said.

The SEC Boss assured the commission would continue to promote this agenda through advocacy at any given time with the conviction that in spite of periodic resistance it will ultimately succeed.