The Ghana Stock Exchange (GSE) has taken a decision to change the ownership structure and operations of the local bourse to a more profit-making institution.
This process when successful will mean the legal status of the GSE will be changed from mutual entity limited by guarantee to a company limited by shares.
Addressing members of the GSE at its Annual General Meeting in Accra, Chairman of the Board of the GSE, Albert Essien disclosed that a consulting firm had been contracted to help with the transformation process.
The decision to change the operations of the Ghana Stock Exchange is to follow international best practices which make members of the exchange shareholders.
“The move which is expected to be completed next year will make the exchange a profit-making corporation that will be trading shares,” he noted.
However, members are expected to attend an Extraordinary General Meeting to pass a resolution on the transformation.
Deputy Managing Director of the Exchange, Ekow Afedzie, explains that the process is still ongoing and expected to end by next year.
“Currently at the Ghana Stock Exchange we’re a company limited by guarantee and we have members, licensing and stock broken firms and associate members but ones we de-mutualize then we will have shareholders.
So we need to go through a certain process in order to get there so we’re currently working on it, this is a best international practice that makes the exchange more profitable and flexible for more shareholders to come on board” Ekow Afedzie said.
As part of the transformation, the exchange is in the process of finalizing a three-year strategic plan to guide its medium-term operations.
The year 2018 saw a slow growth of the GSE as a result of the banking crises experienced in the country.
Meanwhile, the volume of shares traded for the year 2018 was 201 million valued at GH¢659 million compared to the volume and value of 322 million shares recorded for 2017.
Mr Essien is hopeful that the market will continue to pick up in the coming year.