Financial Instruments


Typical Concerns:
 
  • What are investment returns on various Ghanaian debt instruments?
  • Who can advise and assist me on the acquisition of Ghanaian debt instruments?
  • What makes micro finance successful?
  • What are the favorable and unfavorable lending trends in Ghana?
  • What do investment advisors say about the future of stocks on the Ghana Stock Exchange?
  • Who can advise and assist me on the acquisition of Ghanaian equity instruments?
  • What are the inflation and exchange rate trends in Ghana?
 
Solutions
 
  • Investment Returns on Debt Instruments
 
The rates for 91-day and 182-day Treasury Bills can be viewed on the Ministry of Finance - Key Rates Website. These treasury bills are a much higher rate of return than most Northern hemisphere counterparts. Bank base lending rates at banks have been in the 25 to 30% range. Micro finance yields are often in the 40-60% range. Before investing, you should seek the advice of a qualified investment advisor.
 
  • Who Can Advise On Debt Instruments?
 
Only qualified and licensed investment advisors should render advice on debt instruments.
 
  • Micro finance Success
 
Micro finance generally has a good investment reputation.
 
  • Lending Trends
 
Bank performance remains strong in Ghana. The spread has recently increased in Ghana as the cost of borrowing has decreased and lending rates have remained constant. High non-performing loans contribute to the loan spread. Lack of a strong credit rating and collection system, and corruption are contributors to the high non-performing loans.
 
  • Ghana Stock Exchange Trends
 
“Ghana’s main stock index, the best performer in Africa this quarter, may soar another 40 percent this year as the start of oil production spurs the world’s fastest pace of economic growth, Exotix Ltd. said.” (Bloomberg – Exitox says Ghana Stocks May Soar}  June 2010
 
  • Acquiring Equities
 
There are 18 stock brokers approved by the Ghana Stock Exchange. GSE - Foreign Investment Rules and GSE Brokers and other key information can be found on the Ghana Stock Exchange Website. Chambers of commerce, chartered accounting firms, and attorneys may be good sources of broker recommendations.
 
  • Inflation and Exchange Rates
 
The Ministry of Finance - Inflation show positive trends over the last year. This is very positive news for the economy and investors. During the same period of time the exchange rate of the Cedi to the dollar has weakened against the dollar. February 2011 Bank of Ghana Inflation Outlook predicts an inflationary trend in coming months.  
 
Helpful Resources
 

Industry Specialists

Click to view organizations that offer assistance.

Cal Brokers Limited
Deloitte & Touche
AKAB Group of Company
Eclipse Microfinance Limited