VIBRANT INVESTMENT MARKET; THE RESPONSE TO JOB CREATION DILEMMA IN GHANA’S ECONOMY

Photo Credit To Securities and Exchange Commission

Despite the desire of any leader in the centre of governance towards economic revolution through job creation to gain a political favour from voters in Ghana, it is always observed that the sincere approach to job creation, ends up being an illusion. Considering the number of University graduates channelled into the economy every year, ignoring that of non-graduates unemployed citizens, easily concludes the fragility nature of the Ghanaian economy against the performance effort of domestic private businesses towards economic growth.

This article under a simple text seeks to briefly and explicitly suggest the exact cause of this conundrum, and finally narrow the argument on the required vibrancy of the financial security market, narrowing the submission on the ecology of the capital market of Ghana, which my article titled  “The proposed investment industrial structure for employment opportunities in Ghana’s Economy”, offers extensive explanation https://www.ghanaweb.com/GhanaHomePage/features/The-proposed-investment-industrial-structure-for-employment-opportunities-in-Ghana-s-economy-752704” .

We are struck with a dilemma and a puzzle question after the swearing-in of the current government in 2017; considering their various initiatives to address unemployment issues through their various programs like Nation Builders Corps, One-district-one-factory, revamp of the financial sector to solidify the investment capacity of the economy, introducing entrepreneurship course content to the Universities programmes to arm graduates on the self-employment mindset agenda, and other related initiatives, yet all these are not holding the expected result as their policy specifies.

The difficulties emerge from the reality of the working economy. There is a challenge of a poor inter-connectivity of policy initiatives in a well-modelled econometrical fashion to generate a significant impact on job creation to obtain a result that addresses the desire of a high percentage of the citizens’ and their welfare interest. Anytime Entrepreneurship is proposed as a professional practice and a recommendation among the graduates, Politicians need not to forget that Entrepreneurship as a chosen career is not only carrying along with potentially profitable ideas and skills, but the ability to access low costs of capital, which is a vital ingredient to this journey.

Let us ignore the facts that not all individuals as graduates have the capacity to manage the stress associated with private enterprise management. If access to low-cost capital for start-up ventures is a prerequisite indicator in any quality entrepreneurship policy design program of an economy, then let me narrow the argument on the analysis of the current state of the financial securities market of Ghana.

I am very much inspired considering the current development and innovation in the Finance Securities market with respect to the age of Ghana in her 60’s independence day. It took the United States of America 160 years from independence to be able to write and enact good laws governing its securities and exchange market. However, having a model to look up to as a guide to construct Ghana’s financial-investment architecture in other to build a vibrant capital market, should make it very easy to innovatively climb the ladder as an African model worth imitation on the continent of Africa, as it has modelled such perception after independence as the star of Africa.

The Securities Act of Ghana, 2016 (Act 929) set-out in its article (3), the function of the commission to register, license and authorize the following offices in the securities market in Ghana, which are;

  1. Securities Exchange
  2. Commodities and Futures Exchange
  3. Securities depositories
  4. Clearing and Settlement Institutions
  5. Credit rating agencies
  6. Fund Managers
  7. Investment Advisory
  8. Unit Trusts
  9. Mutual Funds
  10. Hedge Funds
  11. Private Equity funds
  12. Nominees, underwriters, issuing houses
  13. Registrars, Custodians, Trustees
  14. Primary dealers, Broker-dealers

By the Law, and a critical analysis into the fourteen(14) categorized agency-type by this article as required for a vibrant financial security markets, to deepen the financialization of the economy, it is observed that eight (8) out of the fourteen (14) agency specialization, is functioning up to the satisfactory level in Ghana, which is at par to the modern investment trend, yet requires more room for improvement in terms of quality skill and innovation to trading. It is by the innovative introduction of modern skills to trading that is the only means to advance the investment industrial performance, forcing the regulatory laws enacted for the market to advance through the stages required in other to address the challenge of the high cost of capital towards entrepreneurial ventures, in the economy of Ghana.

This will make Entrepreneurship policy initiative and application easily attractive to be adopted by University graduates as a reasonable means in solving unemployment circumstances to a higher degree. Without forgetting that these fourteen (14) agencies required in the securities market of Ghana, will need qualified companies with the competent skill of labour force to offer such services types, to help deepen the financial market performance currently. All these are sources of employment avenues, coupled with job opportunities associated with over-the-counter trading by automated procedures, which in most empirically conclusions, it has the ability as a sector of Ghana’s economy to create over 60% of job opportunities in Ghana, if the current economy could fulfil the condition of quality skills availability for this industry.

….……………………………………….

Emmanuel Tweneboah Senzu, Ph.D.

Professor of Economics & Finance

Frederic Bastiat Institute of Africa

University College of Management Studies

Director of Technical Services, Trustwork Consulting ltd. International

Tsenzu@ucoms.edu.gh

Post source : Frederic Bastiat Library

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