Analysts have projected more foreign patronage of Ghana’s capital market following a pickup of activities on the market.
The cedi depreciation, rising inflation plus the power crisis affected the bottom-line of businesses for the past three to four years.
The development also led to a dip in the performance of most businesses listed on the local bourse leading to an eventual slowdown in the growth of investment stocks.
But the CEO of Dusk Capital Limited, Bernard Osei-Tutu tells Citi Business News the growth in the market will support private sector growth.
According to him, the policies outlined by the government should also culminate in the highly expected growth targets.
“The President in his state of the nation address announced plans to list the VRA and GRIDCo on the Ghana Stock Exchange and that presents a lot of opportunities for us as investment managers…The government acknowledges that the private sector is the engine of growth, plus a finance Minister with a capital market background is an indication that the government has our interest at heart,” he said.
Though the stock market recorded a negative growth for the past few years, the managers are confident of improved performance this year.
Bernard Osei-Tutu however urged fellow investment managers to be prepared for the task ahead.
In his view, a private sector growth coupled with a developed investment climate should reduce government’s over reliance on grants, aid and the rising external debts.
“It is just fair that we as managers should prepare ourselves to face the challenge that lies ahead of us. Developed countries have used their capital markets to grow their economies and it is time that developing economies like Ghana takes it capital market seriously in order to reduce its dependence on borrowing from the developed ones,” he suggested.
The Dusk Capital Limited CEO spoke to Citi Business News at the sidelines of a ceremony to mark the signing of a partnership agreement with International Investment Management Group Africa.
The agreement will give the company access to over 300 international mutual funds from other leading institutions like JP Morgan, HSBC and Goldman Sachs.
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(Via: CitiFM Online Ghana)
