Ghana Stock Exchange urges SMEs to consider listing on the Stock Market

May 16, 2024
Ghana Stock Exchange urges SMEs to consider listing on the Stock Market

Jerry Boachie Danquah, Head of Marketing at the , has advised small and medium-sized enterprises (SMEs) across Africa to explore listing on stock exchanges as a strategic move for the longevity and capitalization of their businesses.

Speaking at a panel discussion during the 3i Africa Summit in , Danquah emphasized that the reluctance of African SMEs to seek partnerships through listings on national stock markets often limits their access to vital capital, leading to the downfall of their ventures.

Citing examples like Unilever Ghana Ltd and other global corporations, Danquah highlighted how these enterprises have sustained their longevity by being listed on the stock market, thereby accessing vital capital and governance structures necessary for growth and stability.

According to Danquah, observations from the Ghana Stock Exchange indicate that many African SMEs exhibit emotional attachment to their businesses, which often results in their failure, especially in the event of the owner's demise. He stressed the importance of considering stock market listings as a means to access capital and establish governance systems conducive to business sustainability.

The summit, themed “Unleashing Africa's FinTech and Digital Economic Potential,” aimed to foster innovation and collaboration across various industries in Africa, providing a platform for stakeholders to interact and explore opportunities for growth.

In his address, Danquah urged SMEs to adopt robust financial and managerial practices to ensure the longevity and sustainability of their businesses. He emphasized the importance of implementing basic accounting and bookkeeping practices to enhance creditworthiness and facilitate access to credit from financial institutions.

As African economies continue to evolve, the advice from the Ghana Stock Exchange underscores the importance of strategic financial planning and collaboration for SMEs seeking to thrive in the competitive business landscape.

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