- Fresh details coming in show that there has been a downturn in Africa's capital markets
- This was based on a review of the performance of Africa’s capital markets between 2010 and the first quarter of 2020
- Africa's capital market value in 2019 was the lowest recorded in the last decade
Our Manifesto: This is what YEN.com.gh believes in
There has been a downturn in African capital markets over the past three years, data from the PricewaterhouseCoopers (PwC) Nigeria 2019 African Capital Market Watch, has shown.
The report reviewed the performance of Africa’s capital markets between 2010 and the first quarter of 2020.
The downturn is a result of fiscal challenges major economies deal with as a result of increasing debt and slow economic growth.
YEN.com.gh understands that capital market value in 2019 was the lowest recorded in the last decade.
Per a report by thebftonline.com, Geoffrey Odundo, Chief Executive Officer (CEO) of the Nairobi Securities Exchange said: “Capital markets in East Africa have taken a hit, with a 20% decrease in trading volume since the beginning of COVID-19.”
However, there are reports of increased activity from domestic markets.
According to Daniel Ogbarmey Tetteh, Director-General, Securities and Exchange Commission (SEC), market activity on the Ghana stock market had remained robust, with an almost threefold increase in trading volumes between January and April 2020, compared to the same period in 2019.
He added that a good proportion of these trades originated from domestic investors.
In other news, the Bank of Ghana (BoG) has expressed optimism in the ability of banks in Ghana to withstand credit shocks caused by the outbreak of the coronavirus.
According to the Governor of the Bank of Ghana, Dr. Ernest Addison, recent stress tests conducted show that the banks were strong, resilient and well-positioned to withstand mild to moderate liquidity and credit shocks.
He added that the capital adequacy ratio is well above the revised regulatory floor of 11.5%.
Read the best news on Ghana #1 news app. Install our latest app for Android and read the best news about Ghana
Newly-built Tema Motorway Interchange opened to traffic | #Yencomgh