Managing Director of Ghana Stock Exchange (GSE), Kofi Yamoah has stated that the exchange has put in place a number of measures to encourage companies to list on the Ghana Alternative Market (GAX).

This follows some concerns that the patronage of the main exchange and in particular is very low, but speaking to JoyBusiness, he explained some factors underpinning this low patronage of the Ghana Alternative Market such as the cultural mindset where some entrepreneurs prefer to own 100% of their companies. He was of the opinion that with time this mindset will change.

Mr Yamoah also outlined a number of measures the GSE is putting in place to encourage smaller companies with a potential for growth to list on the exchange.

“We’ve stepped up our education not mass media but targeted education. Targeted at the companies that potentially can be listed on the GAX. We have what we call sessions with potential companies and we do that regularly,” he said.

He added that the exchange apart from education has also put in place a listing support fund which companies interested in listing on the GAX.

“When a company decides to use the market, we will provide a support fund where they can tap into, pay the upfront advisory cost of preparing to come to the market so that when they go to the market and raise the money from the offer they can pay us back at no interest,” he stated

The GAX is a parallel market operated by the Ghana Stock Exchange. It focusses on businesses with potential for growth. The GAX accommodates’ companies at various stages of their development, including start-ups and existing enterprises, both small and medium.
Macroeconomic outlook

He again added that for a sustained uptick in activity on the stock market, the macroeconomic fundamentals such as inflation, exchange rate among others should hold so businesses will have the ability to forecast their growth better and give investors much confidence to invest in a range of products in the financial markets.