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Business News of Thursday, 16 May 2024


Source: GNA

African SMEs urged to enlist on Stock Market

Jerry Boachie Danquah Jerry Boachie Danquah

Jerry Boachie Danquah, Head of Marketing, Ghana Stock Exchange, has advised small and medium-sized enterprises (SMEs) in Africa to consider listing on stock exchanges for the longevity and capitalization of their businesses.

He said the unwillingness of African SMEs to allow partnerships through enlistments on their respective national stock markets deprived them considerable access to capital, resulting in the failure of their businesses.

Speaking at a panel discussion on bridging the gap between academia and industry on the third and final day of the 3i Africa Summit in Accra, Mr. Danquah stated that enterprises, particularly Unilever Gh Ltd and other prominent global corporations, have maintained their longevity by listing on the stock market.

He said observations gathered at the Ghana Stock Exchange showed that SMEs in Africa were emotionally attached to their businesses, which almost always resulted in their failure when the owner died.

“We advised them that one of the best ways to access capital and ensure the longevity of their business is to consider enlisting in the stock market. Once they are enlisted on the stock market, they will get the right board and systems that will ensure the longevity of their businesses,” he said.

The summit was organised under the theme “Unleashing Africa’s FinTech and Digital Economic Potential.”

It aimed to provide a platform for stakeholders from all industries to interact and encourage innovation across Africa.

Mr Danquah urged SMEs to adopt and implement prudent and robust financial and managerial practices to ensure the longevity and sustainability of their businesses.

“It is imperative to incorporate basic accounting and bookkeeping practices to ensure creditworthiness and easy access to credit from financial institutions,” he said.