CMA in pact with Ghanaian securities exchange

September 7, 2011
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, NAIROBI, Kenya, Sep 7 – In efforts to deepen co-operation with other capital market regulators in Africa, the Capital Markets Authority (CMA) has signed a Memorandum of Understanding (MoU) with the Securities and Exchange Commission (SEC) of Ghana.

CMA Chief Executive Officer Stella Kilonzo said the MoU represents more than a partnership between the two regulators, opening up the door to have a more comprehensive relationship with Ghana.

“This MoU is to help us enhance our co-operation, promote mutual assistance and facilitate the exchange of information and consultation between the CMA and SEC of Ghana,” she said.

The MoU includes technical assistance, product development and market deepening initiatives and investor education among other areas of co-operation between the two regulators.

Acknowledging the developmental differences between the two capital markets, Mrs Kilonzo said a focus for the two regulators will be recognising priorities which she said for Kenya will be product development.

“We are in the process of undertaking real estate investment trust regulations. Ghana has a real estate company that has been undertaking real estate investment trusts. That would add value at the on-set,” she said.

The Director General of the Securities and Exchange Commission of Ghana Adu Anane-Antwi said the MoU allows Ghana to draw from CMA’s vast experience in regulating the financial services industry in Kenya.

“Kenya has many years of experience than Ghana, at least about 10 years. We believe that we can learn a lot from them. Kenya might have a product that we can study and see how Ghana can introduce it into the market,” he said.

Mr Antwi added that as the co-operation between the two regulators grows, it will provide long-term benefits to boost the Kenyan and Ghanaian markets

“If a Kenyan company realises that there is huge potential to get equity in the Ghanaian market, once you have co-operation you should be able to go through with no restriction and get it. It should be the same for a Ghanaian company,” he said.

To diversify the traditional buying and dealing in bonds and stocks at the Ghanaian stock market, the SEC of Ghana recently introduced the first NewGold Exchange Traded Funds listing onto its local bourse.

The mineral has been operating at its peak lately with gold futures trading around $1,840 an ounce, giving investors the option of buying and selling in gold bullion on the Ghanaian stock market.

Both CMA and the SEC of Ghana are members of the International Organisation of Securities Commissions (IOSCO), the leading international policy forum for securities regulators.

Responsible for over 95 percent of the world’s securities markets, IOSCO promotes consultation, co-operation and exchange of information among capital market regulators globally.

CMA has signed MoUs with the capital markets regulators of Tanzania, Uganda, Rwanda, Burundi, Malaysia and Chinese Taipei.

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