GSE is a game-changer for businesses seeking growth

My journey with the Ghana Stock Exchange (GSE) has been eye-opening. I’ve seen how local businesses use the Exchange to grow sustainably.

Capital raising is not just financial; it’s a growth strategy. It builds trust and drives national development.

One inspiring example is Kasapreko PLC. This Ghanaian beverage company aimed to raise GH¢600 million in three years through the Ghana Fixed Income Market (GFIM). Many doubted its success, but Kasapreko raised over GH¢350 million in just one year. They did this at a cost 10% lower than traditional financing.

This achievement shows the GSE's strength as a financing tool. It also proves that our financial systems are maturing to support real sector growth. The capital raised benefited not only the business but also everyday Ghanaians and institutional investors.

A strong capital market creates a multiplier effect in our economy. However, many businesses still rely on traditional loans, which often come with high interest rates and short repayment periods.

The GSE offers an alternative path for businesses. It encourages long-term thinking, governance improvements, and shared prosperity. Through public listings and corporate bonds, companies can access funds without diluting their values or straining cash flows.

Unfortunately, this option remains underutilized by entrepreneurs. Many believe the Exchange is only for large corporations or foreign investors.

In reality, the GSE has platforms for Small and Medium Enterprises (SMEs), like the Ghana Alternative Market (GAX). These platforms are open to businesses ready to grow responsibly and transparently.

The stock exchange fosters ownership among Ghanaians. When they invest in local companies, they support job creation and wealth circulation within our borders.

For business owners, raising capital through the Exchange signals readiness for bigger opportunities. It shows accountability and belief in long-term vision.

We need more of this culture of ownership across all sectors of society. Ghana does not have a capital problem; it has a capital alignment problem.

We need a mindset shift from short-term borrowing to long-term partnerships. The GSE bridges ambition with action for local businesses seeking capital.

Kasapreko’s story inspires confidence that many more businesses can succeed using this platform. In my experience, the GSE is not just a market; it’s a movement that empowers businesses and engages Ghanaians in meaningful ways.

If you’re a business owner or an investor looking for growth opportunities, consider the Ghana Stock Exchange again. The tools are available, success stories exist, and we can shape our future together.

The writer is a student at the University of Ghana Business School studying Accounting and Finance. She serves as Deputy Chief of Staff of the University of Ghana Students’ Representative Council and Publicity Head for Enactus University of Ghana.

Sylvana won the 2024 KPMG Internal Audit Article Writing Competition for her analytical skills in finance. She gained industry experience through internships with KPMG and others. You can reach her at 0208395962 or via LinkedIn at http://linkedin.com/in/sylvanateiman.