GSE promotes financial literacy, sustainable investing at ‘Ring the Bell’

The Ghana Stock Exchange (GSE) is intensifying its efforts to promote financial literacy and sustainable investing, with the goal of positioning Ghana as a leader in green finance.

These plans were outlined by Ms. Abena Amoah, Managing Director of the GSE, during the ‘Ring the Bell for Financial Literacy 2024’ event held in Accra.

At the heart of the GSE’s vision is the development of a Ghana Investment Marketplace app, which aims to integrate technology further into the nation’s capital markets.

Describing the app as a comprehensive platform for investment products—ranging from treasury bills to mutual funds, insurance policies, and shares—Ms. Amoah expressed her vision: “It is my dream to see every Ghanaian have access to a comprehensive investment platform right on their mobile phones.”

The event also served to underscore the importance of financial education in broadening market participation and promoting sustainable investment practices. Ms. Amoah emphasized that financial literacy is essential for ensuring that all Ghanaians can access investment opportunities, particularly those aligned with global trends in environmental, social, and governance (ESG) investing.

“We cannot fully realize the potential of our digitalized capital market if the public lacks the knowledge or confidence to participate in it,” she remarked, noting that the GSE has been actively educating the public about the benefits of ESG-friendly assets.

In recent years, the GSE has introduced several digital tools to enhance market participation, including the Trade Life and MarketWatch portals, which provide investors with real-time trading updates. According to Amoah, these platforms have democratized access to investment opportunities, allowing Ghanaians from all backgrounds to engage with the capital markets.

Since 2022, financial literacy has been central to the GSE’s outreach efforts. In collaboration with partners like the Central Securities Depository, the Young Investor Network, and the Securities and Exchange Commission (SEC), the GSE has conducted more than 137 financial literacy programs across schools and tertiary institutions, reaching over 65,000 students. These initiatives aim to educate young people about financial markets and the opportunities available through digital platforms.

“Financial literacy is the bedrock of a healthy capital market,” Amoah said. “Without it, the public would be unable to fully participate in the market’s offerings.”

Reflecting global momentum in green finance, the GSE introduced its Green and Sustainable Bond Market Rules earlier this year. These rules provide guidelines for the issuance of bonds aimed at financing environmentally friendly and socially responsible projects, while promoting transparency in ESG reporting. Amoah noted that these rules are part of the GSE’s broader strategy to align local financial markets with global trends.

“Since the launch of our Green Bond Market Rules, we have been actively educating the public on the importance of sustainable investing and the role of green finance in shaping our future,” she explained, adding that green investments go beyond financial returns, contributing to lasting social and environmental impact.

The GSE’s focus on green finance comes at a time when global markets are showing increased interest in sustainable investment products. Earlier this year, Hong Kong successfully issued a two-year digital green bond worth $6 billion (HKD), drawing international investors from diverse sectors. This issuance is part of Hong Kong’s efforts to integrate digital finance with environmental goals, providing a model that Ghana could follow.

Addressing concerns about whether Ghana’s capital market is keeping pace with global trends, Ms. Amoah highlighted the GSE’s long-standing commitment to digital innovation. “We started our digital transformation in 2008, and we’ve continued to innovate,” she said, referring to the GSE’s early efforts to digitalize ownership of financial instruments by moving from physical share certificates to an entirely electronic trading system.

“In 2018, Ghana witnessed the first massive digital Initial Public Offering (IPO) when MTN Ghana went public, allowing investors to subscribe and pay for shares digitally,” she added.

As the GSE continues its push for financial literacy and sustainable investing, its initiatives could position Ghana to take advantage of global trends in green finance, driving broader market participation and advancing the country’s financial landscape.