ACI Ghana advocates inclusion in Capital Markets Masterplan

The ACI Ghana – Financial Markets Association has held its inaugural Financial Markets Conference in Accra.

The conference, which brought together over 500 participants, including foreign delegates and 50 speakers from various financial sector institutions, was under the theme “Navigating the Future: Innovation, Ethical Excellence, and Inclusion in Ghana’s Financial Markets.”

In his welcome address, President of ACI Ghana—Financial Markets Association, Lawrence Osilaja Boampong, stated that the conference aims, among other things, to identify actionable and practical steps that will contribute to the success of future editions.

“The outcome of this conference should not only inspire but also guide us in shaping the future of our financial markets,” he said.

Mr. Boampong also used the opportunity to request the Securities and Exchange Commission (SEC) to include ACI Ghana in the development of the Capital Markets Masterplan working group, adding the association has the requisite skills and expertise to contribute significantly to the plan.

He revealed key industry benchmarks the association is presently draughting, including the Ghana Overnight Index Average, “which will serve as a benchmark for overnight borrowing,” and a Money Market Goal, “which will provide a standardised framework for the operation of money markets in Ghana, ensuring transparency, efficiency, and stability.”

Minister of State at the Ministry of Finance, Abena Osei-Asare, who was the guest of honour for the conference, said that despite the financial sector clean of 2019 and the DDEP, the economy is currently stable now, thanks to the sacrifices of financial sector participants and the banking public.

She expressed her appreciation to regulatory institutions under the financial sector for taking steps to ensure the continuous running of their various companies and building confidence among the Ghanaian people.

She noted that the government, following the challenges of the banking sector, has worked to protect the savings of some 4.6 million Ghanaians while deploying measures to improve the effectiveness and efficiency of the sector.

“We inherited a financial sector that needed to be saved. We responded to protect the savings of 4.6 million Ghanaian depositors. We provided policy and regulatory measures to enhance liquidity, preserve total buffers, and offer reliefs to customers when COVID-19 struck.”

According to her, the growth in the financial sector is evidenced by its contribution to the growth of the economy.

“Today, the financial sector is stable, and indeed it is safe and catalysing the rebound of the economy. As a result of that, growth is robust, averaging 4.7% in the 1st quarter of 2024 and driven by the industrial sector, followed by the services sector. This is way higher than the 3.1 that was recorded over the same period last year,” the minister said.

She also highlighted positive developments in inflation, forex reserves, and fiscal position as of the end of the 2nd quarter of 2024.

Mrs. Osei-Asare advised adherence to principles of integrity and ethical conduct amidst the innovation and technology-driven transformations in the financial markets.

“With innovation comes the need for ethical excellence. We must ensure that our pursuit for progress is guided by integrity, transparency, and accountability.”

She asked the association to champion the rollout of more initiatives that enhance financial inclusion while managing ever-increasing pressures of regulation, the economic environment, and the satisfaction of various stakeholders.

Head of Financial Markets at the Bank of Ghana, Dr. Zakaria Mumuni, who delivered the keynote speech on behalf of the Governor, Dr. Ernest Addison, asserted that due to Ghana’s strong financial sector regulatory framework, the country has been able to withstand major domestic and external shocks, including the global financial crises, financial sector clean-up, the COVID-19 pandemic, and the DDEP.

He concluded that “in the future, there is a need to build on this resilience by embracing innovation, adopting ethical standards, and ensuring inclusive growth.”

Dr. Mumumi listed regulatory frameworks and initiatives the central bank has undertaken to boost innovation and inclusiveness in the financial services delivery, including the passage of the Payment Systems and Services Act 2019 (Act 987), the establishment of a regulatory sandbox in 2023, and other collaborations with banks, electronic money issuers, mobile money operators, payment service providers, and payment support solutions leading to the introduction of innovative services aimed at enhancing inclusiveness.

He urged financial service providers to strengthen collaborative efforts to support and invest in local fintech start-ups, adding that “the start-ups often bring innovative ideas to enhance financial services and inclusiveness.”

Director-General of the Securities and Exchange Commission (SEC), Rev. Alfred Ogbarmey Tetteh, stated the theme of the conference was aligned with the objectives of the SEC, which include regulating, innovating, and promoting the growth and development of the efficient, firm, and transparent securities industries where investors and the integrity of the markets are protected.

He highlighted the crucial role of the SEC and other financial sector regulators in navigating the complexities of contemporary capital markets.

Rev. Ogbarmey Tetteh also rallied capital market players to strive to create a financial system that serves all segments of society.

“Expanding access to financial services, empowering women in finance, and promoting financial literacy are essential steps towards achieving a truly inclusive financial ecosystem,” according to him.

He revealed that the SEC is actively collaborating with industry partners to develop innovative financial products and services that cater to the needs of the underserved communities.