The Chairman of the Ghana Stock Exchange (GSE), Dr. Sam Mensah has admitted to Citi Business News, it would probably take a while for SMEs to get accustomed to listing on the bourse.
The GSE has initiated efforts especially through the Venture Capital Trust Fund to get the SMEs to list but this has still not yielded any results yet.
According to Dr. Sam Mensah, even though listing on the bourse has numerous advantages, the SME’s rather seem more attracted to the traditionally expensive debt financing.
He said: “There are various reasons that may have advanced. Some say that SMEs do not want the transparency of listing on the stock exchange which is possible in the sense that if you compare the Ghana Stock Exchange to let’s say the Venture Capital Trust Fund which has only existed for maybe only four years; in the four years of existence, about 44 SME’s have benefitted from the equity investments of the Venture Capital Trust Fund compared to the fact that the Ghana Stock Exchange is adding only one company per year.”
“And so we have realized that more companies have gone to the Venture Capital Trust Fund in four years than companies coming to the Ghana Stock Exchange in 20 years plus,” he added.