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

Photo Credit To Securities and Exchange Commission

Despite the high desire of all leaders of governance in revolution to job creation, to score a political credit in Ghana, it always observed necessary strategic approach to job creation ends up being just illusion in getting closer to the aspired result, considering the number of University graduates channeled into the economy every year, ignoring the data-report of non-graduates unemployed citizens. This conclusively defines the fragility nature of the Ghanaian Economy against the effort of domestic privates businesses and employment opportunities.

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 vibrant of security market functioning, with the article being pragmatic enough in considering the ecology of the capital market of Ghana, which my earlier article titled  “The proposed investment industrial structure for employment opportunities in Ghana’s Economy https://www.ghanaweb.com/GhanaHomePage/features/The-proposed-investment-industrial-structure-for-employment-opportunities-in-Ghana-s-economy-752704”  ignored to delve deeper.

We are strike 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 programs to arm graduates on self-employment mindset agenda and other related initiatives yet all these are not holding the expected result.

The cause is observed to be simple, in the reality of the working economy, there is a poor inter-connectivity of policy initiatives in a well-modeled econometrical fashion to generate a significant impact on job creation cum result that addresses the desire of high percentage of the citizens’ welfare interest. Anytime Entrepreneurship as a proposed professional practice is recommended among the graduates, politicians should not forget, Entrepreneurship as a chosen career is not only carrying along with potentially profitable ideas but the ability to access low cost 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 for the purpose of the argument this article seeks to make. 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 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 from independence. It took the United States of America 160 years from independence to being able to write and enact laws governing its securities and exchange market. However, having a model to look-up-to as a guide to construct Ghana Financial-investment architecture to build a vibrant capital market should make it very easier to innovatively climb the ladder as an African model worth imitation on the continent of Africa, as it has modeled 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, 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

Making a critical analysis into the fourteen(14) categorized agency-type by this paper as required for vibrant securities market to deepen the financialization of the economy, it is observed eight (8) out of the fourteen (14) agency specialization, is functioning up to the satisfactory level in Ghana, in comparison to modern investment trend, which 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, which could advance the investment industry performance, forcing the regulatory laws to be enacted towards the market transitioning stages as the option in addressing the challenge of the high cost of capital to Entrepreneurship ventures in the economy of Ghana, making Entrepreneurship policy initiative and application attractive to be adopted by University graduates as a logical means in solving unemployment circumstances in a higher degree. Not also 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, and all these are sources of employment avenues, coupled with job opportunities associated with over-the-counter trading by automated procedures, which empirically concludes, 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 fulfill the condition of quality skills availability for this industry.

….……………………………………….

Emmanuel Tweneboah Senzu, Ph.D.

Professor of Economics & Investment

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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