Ghana to become leading hub for securities market – SEC

By Isaac AIDOO, Accra

DEPUTY Director-General of the Securities and Exchange Commission (SEC), Mrs. Deborah Agyemfra, has reaffirmed the regulator’s commitment to reforming Ghana’s securities market to achieve its vision of becoming a leading hub for securities trading and investments in the sub-region.

Speaking at an event commemorating the 20th anniversary of the Central Securities Depository (CSD), Mrs. Agyemfra highlighted the pivotal role of the CSD in driving the transformation of Ghana’s securities industry.

CSD’s role in advancing market efficiency

Mrs. Agyemfra commended the CSD for its efforts in transitioning the securities market from a paper-based system to an advanced electronic infrastructure.

“This shift has not only enhanced market efficiency but has also strengthened financial markets, positioning Ghana’s securities markets in alignment with global standards,” she stated.

From a regulatory perspective, the SEC recognizes the CSD’s significant contributions toward building a robust financial infrastructure. To support these advancements, the SEC has consistently encouraged investments in cutting-edge technology to ensure that CSD’s services remain world-class.

The CSD is currently undertaking a major project to implement a new system, which Mrs. Agyemfra described as a key step in meeting international standards. She revealed that revised and enhanced rules governing the operations of the new system are under review by the SEC. “We fully support the efforts to bring this project to fruition,” she said.

Overcoming challenges to build a resilient market

While acknowledging the achievements, Mrs. Agyemfra noted that Ghana’s securities market has faced several challenges over the years. These include economic shifts, market volatility, and regulatory hurdles.

“However, we remain optimistic and confident that with the right tools, framework, and strategic direction, Ghana’s securities markets will continue to recover and thrive,” she said. Drawing lessons from other jurisdictions, she emphasized the potential for markets to rebound effectively when appropriate measures are implemented.

A new legal framework for market growth

To ensure sustained growth, Mrs. Agyemfra announced that the SEC is developing a new securities law. The second draft of the bill has been submitted and is currently under review by stakeholders.

“We hope that the bill will become a document that is fit for purpose for the direction of Ghana’s capital markets,” she remarked, emphasizing the importance of collaboration in refining the legislation to support investor protection and market expansion.

A bright and promising future

Mrs. Agyemfra expressed optimism about the future of Ghana’s capital market, describing it as “bright and promising.” She assured stakeholders that the SEC remains steadfast in promoting sound regulatory policies, fostering innovation, and ensuring fair market practices.

Collaboration with the CSD will focus on streamlining processes, enhancing security, and introducing new services aligned with global best practices. Technology, she stressed, will remain central to the ongoing growth of the securities market.

“Together, we will work towards building a robust securities market that will drive economic growth in Ghana,” Mrs. Agyemfra concluded. The event underscored the SEC’s vision for a resilient and inclusive market, with the CSD playing a critical role in shaping the future of Ghana’s securities industry.