Accra, 29 May - Ghana’s Finance and Economic Planning Minister, Mr. Kwadwo Baah-Wiredu recently called for a harmonized regulatory framework for the securities markets in the West African Region.

Speaking on behalf of Baah-Wiredu, Ghanaian Deputy Finance Minister, George Gyan-Baffour, said regulation is key to capital market development. The statement came at the start of a three-day workshop for capital markets regulators and practitioners sponsored by the United Nations Economic Commission for Africa (UNECA), in the Ghanaian capital, Accra, from 24-26 May.
 
“Collectively, we must build capital markets that will excel in the long term, while serving the interests of our people and our businesses today. To do this we need to proceed carefully, thought fully- to choose the best solution,” he said.
 
While conceding that the West African Monetary Zone’s goal of achieving cross-listing of stocks and securities in the region by December 2006 will not be met, he encouraged regulators to synchronize their frameworks. 
 
“The challenge for West African securities regulators is nevertheless to forge ahead with harmonization which is inevitable,” he said.
 
Beyond the goals of the West African Monetary Zone, Gyan-Baffour highlighted how significant capital markets are to governments and citizens of the region.
 
“Today, capital markets are not just a question of finance. With increasing numbers of Ghanaians becoming shareholders, capital markets are crucial to their financial security,” Gyan-Baffour said of Ghana. 
 
To his government, said Baah-Wiredu, an efficient capital markets will be key to their private sector-driven accelerated growth strategy.
 
He listed steps the Government of Ghana has taken to strengthen the regulatory framework. The Ghana Stock Exchange has drawn up a new rule book with input from all stakeholders including government to take it to the next stage of development.
 
Also, financial legislation designed to align Ghana with global best practices are in the pipeline. These include the Credit Reporting bill, Anti- Money Laundering Bill and Foreign Exchange Act. Again, a Central Securities Depository Bill is about to be introduced in Parliament to provide legal backing for a smooth transition from certificated securities to an electronic book entry system.
 
The government of Ghana is envisaging further reforms under its Financial Sector Strategic Plan, which is the blueprint for the financial sector development to the year 2011.
 
The changes include a comprehensive review of the Securities Industry law, 1993 to bring it in line with market changes and global best practices and a review of the regulatory structure for the entire financial market including options for an improved integration of regulation across banking, insurance and securities segments of the market.
 
Gyan-Baffour acknowledged that the laws without enforcement will not help. 
 
“We need to recognize the importance of effective enforcement in contributing to trust and confidence in markets, and we need to ensure that our system provides a real deterrent against unethical conduct and corporate misbehavior. Doing this requires, first of all, a strong framework of criminal and securities laws to punish offenders, he said.
 
The Accra Training Workshop is the third of its kind. Two sub-regional training workshops for capital market operators were held in Abuja, Nigeria, in 2005 and in Dakar, Senegal, in 2006. The workshops are part of a larger project launched by ECA in 2002 to mitigate the conditions that limit the development of Africa’s capital markets.
 
The next scheduled workshops are in Bujumbura, Burundi in June, and a closing workshop in Nairobi, Kenya, in November.