The Ghana capital market must become deeper and more inclusive if the country is to finance businesses, infrastructure and long-term economic growth, Bank of Ghana Governor Dr Johnson Pandit Asiama has said.
He argues that short-term bank deposits and conventional loans cannot carry the full weight of Ghana’s development needs.
“Ghana cannot finance long-term growth from short-term deposits and conventional bank credit alone,” Dr Asiama said.
He was speaking at the launch of InvestorConnect, a digital platform developed by the Central Securities Depository to give investors direct access to their securities accounts and transaction records.
The platform was unveiled at the Ghana Stock Exchange on Thursday, September 17.
Investors gain direct account access
InvestorConnect is available through the web and mobile applications on Android and iOS.
It allows investors to open securities accounts, verify their identities using the Ghana Card, view investments registered in their names and check transaction histories.
Until now, many investors have depended heavily on brokers, custodians and periodic statements to confirm their holdings. The new platform gives them another way to see what is sitting in their accounts.
“What InvestorConnect removes is one real barrier: the difficulty an ordinary investor faces in seeing, promptly and conveniently, what they own,” Dr Asiama said.
The platform does not replace brokers, custodians or investment advisers. It also does not allow technology alone to solve problems such as limited investment products, low incomes, inadequate financial advice and weak public understanding of capital markets.
That distinction matters. Easier account access is useful, but it is not the same thing as easier investing.
Access beyond major cities
The platform is expected to reduce the geographical disadvantages facing investors outside Ghana’s main commercial centres.
An investor in Tamale or Zabzugu should be able to access the same account information as someone living close to the financial institutions in Accra, Dr Asiama said.
Digital access could also make Ghana’s securities market more accessible to citizens living abroad and international investors interested in local assets.
A broader investor base would give companies more options for raising equity and long-term debt. It could also reduce the pressure on businesses to finance expansion almost entirely through bank loans.
“The market will deepen only if investors can see, understand and trust what they own,” the Governor said.
Cybersecurity becomes the next test
Moving investor records closer to the public also raises security and service concerns.
Dr Asiama urged the CSD to protect the confidentiality and integrity of account information, maintain reliable authentication systems and provide workable recovery procedures when investors lose access.
Users will also require clear channels for correcting account errors and lodging complaints.
“Financial inclusion must go hand in hand with financial literacy and investor protection,” he said.
Ghana’s securities depository system dates back to 2004. Separate depositories established by the Bank of Ghana and Ghana Stock Exchange were later merged, with the consolidation taking effect in January 2014.
The current CSD is owned 70% by the central bank and 30% by the Ghana Stock Exchange. It supports government securities, central bank bills, corporate bonds, equities, repos and other market transactions.
InvestorConnect gives that infrastructure a public-facing door. Whether more people walk through it will depend on trust, useful investment products and a market that offers ordinary investors a reason to stay.
READ ALSO: Government Secures $300m to End Double-track System
