Accra, June 2, GNA – The Ghana Stock Exchange has signed a Memorandum of
Understanding (MOU) with the Stanford Seed Transformation Network Ghana (STN).
This in line with its strategy to groom and prepare the next pool of companies to list on the Exchange.
STN Ghana is a network of graduates of the Stanford Seed Transformation Programme, an initiative of the Stanford Graduate School of Business, which seeks to introduce value enhancing activities for member companies.
This MOU seeks to make the Exchange’s three markets, the Main Market, the Ghana
Alternative Market (or GAX) and the Fixed Income Market (GFIM) available to STN Ghana members to support them raise capital and invest to support their expansion
projects.
Delivering his speech, the Managing Director of Ghana Stock Exchange Mr Ekow Afedzie said, ‘’the purpose of this MOU is to outline the partnership between the GSE and STN Ghana to assist STN’s members to take advantage of the capital raising and investments available on all of the GSE’s markets’’.
As part of the partnership, the Exchange will onboard and disseminate relevant market information to interested STN Members.
It will undertake complimentary market readiness assessments for interested companies within the STN Database.
There will also be joint sponsorship of market awareness and sensitization workshops for members.
In her remarks, the President of STN Ghana, Mrs Linda Ampah said, ‘the STN fraternity is excited about this partnership with the Exchange because the Exchange provides a unique platform for our members to be able to raise long term capital to finance their long-term projects.
She added that the financing options of using equity or debt provided by the Exchange’s platform is very refreshing and attractive for the members.
This will save the members from using short term loans to finance their long-term growth projects, which often results in high financing costs’’.
The GSE is the best performing market in Africa so far this year, with gains of 24.56 on the Main Market for shares.
The Fixed Income Market has traded GHS90billion as of May 27 -over 80 per cent of full year 2020.
Since 1990, the average annual returns on the GSE as measured by its composite index is 25 per cent.
This strong performance underpins the role that Capital Markets play in the development of any economy.
When more companies are listed on the Exchange and can raise the needed capital to finance their expansion projects, there will be creation of more jobs, improved standard of living and prosperity for all.
GNA