The London Stock Exchange (LSE) is in discussions with the Ghana Stock Exchange (GSE) to aid cross-listing in their respective market.
The move is part of a broader initiative to enhance cooperation between the two markets.
UK Prime Minister’s Trade Envoy to Ghana, Adam Afriyie disclosed this in an interview with JoyBusiness’ George Wiafe in Accra.
Proposed deal
Adam Afriyie told JoyBusiness other deals are being worked at that would ensure that the corporation is entrenched.
He said, “we are getting very close, we have meetings today to try to move on the agenda…it may well be that cedi denominated bonds; people can buy Ghanaian bonds from oversees that’s one big project that will open up the flow of funds into Ghana.
The second area is ensuring that Ghanaian businesses where appropriate will be able to have a dual exchange both in the UK on the London Stock Exchange and also Ghana Stock Exchange.”
He added “I think the whole project is designed to bring out the expertise that we have in the UK to the Ghana Stock Exchange and also bring the vast amount of capital and results in non-government capital results. It’s a high-level project but which should have a local impact on the ground very quickly.”
The London Stock Exchange (LSE) in February agreed to cooperate with Ghana to build partnerships, deepen and tighten harmonization. The deal was reached on the sidelines of the Ghana-UK Business Council Meetings in London on 25th February 2019.
The move was to help develop some of the capital market infrastructures that can sustain and deepen the financial markets in Ghana.
The cooperation agreement was reached when a Ghanaian delegation led by the Vice President Dr Mahamudu Bawumia, held a joint meeting with the leadership of the London Stock Exchange, led by Nikhil Rathi, CEO and Director of International Development of the LSE.
A working group to be led by Ghana’s Ministry of Finance and the Emerging Markets Division of the LSE are to see to the effective realization of the objects of the cooperation agreement.
Recent financial sector reforms and performance of Ghana continues to impress the international financial community, leading to significant interest and investment flows into the country.
Last year, Ghana overtook the West African giant, Nigeria in foreign direct investment (FDI) flows.
With such significant strides, Ghana is poised to become the leading financial services hub in Africa.
This, however, requires substantial improvements in the existing financial services infrastructure.