GTIS Quarterly Progress Report: TRAINING OF BAS PROVIDERS TO LIST SMES’ SECURITIES ON THE GHANA ALTERNATIVE MARKET

The project engaged a Consultant to provide advice to and support for BAS Providers on how to issue and list public securities on the Ghana Stock Exchange (GSE). The aim is to expand the options for accessing financing available to companies operating in the agricultural space to include the Ghanaian capital markets. The Consultant developed and delivered a two-day training on how BAS Providers can provide advisory services for companies interested in issuing public securities (debt and equity) and the listing these securities on the GSE. The training included presentations on an introduction to Ghana's capital markets, identifying prospects and preparing them for listing, raising capital and listing on the Ghana Alternative Market (GAX), and the Ghana Fixed Income Market (GFIM). The Consultant also provided guidance on how BAS Providers can develop an appropriate fee structure for their capital raising mandates. The training program was designed to help BAS Providers develop the necessary skills and knowledge to provide advisory services to companies interested in issuing public securities on the GSE. The Consultant also provided a holistic checklist detailing the processes in listing equities on the market to enable advisors work faster. Additionally, the Consultant provided training on raising alternative financing (private equity and bonds) for SMEs from other financial institutions. The Consultant reviewed the key regulatory framework governing financial markets and investment services in Ghana, including the Companies Code, Securities and Exchange Regulations, Securities Industry Act, Foreign Exchange Act, National Pensions Act, Ghana Stock Exchange Rule Book, and Bank of Ghana Rules and Directives. The Consultant also held a series of meetings with key industry players, including the Ghana Securities Industry Association (GSIA), the Securities and Exchange Commission (SEC), and the Bank of Ghana, to gather input on critical success factors for raising public and private capital in Ghana. The Consultant made several recommendations to support the development of the capital markets in Ghana, including encouraging BAS Providers to attend GSE Securities Courses to deepen their understanding of the market, facilitating partnerships between BAS Providers and the GAX to enable BAS Providers to participate in GAX Information Sessions, and advocating for the establishment of a Ghanaian version of Guarantco to provide credit guarantees to raise debt finance for infrastructure projects. The Consultant also recommended that USAID FinGAP engage with regulators and industry associations to help set levels that encourage market development, particularly with regards to the minimum capital requirements for Investment Advisors. The training program was well-received by the BAS Providers, who appreciated the opportunities, challenges, and roadmap to transforming into licensed service providers in Ghana's capital markets. The Consultant will continue to provide support to the BAS Providers who wish to transition into licensed entities.