Day: March 15, 2024

Ghanaian Micro, Small, and Medium Enterprises’ (MSMEs) participation in the African Continental Free Trade Area (AfCFTA) gets major boosts with a $70, 000 grant.

The United Nations Development Programme (UNDP)/ Absa Bank Ghana partnership is part of a series of business development activities, which has already supported about 3,000 enterprises over the past four years.

Under the current programme, some 18 MSMEs that qualified from an innovation pitching competition would be supported to scale and firm up their operations and leverage opportunities presented by the continental free trade.

Beneficiaries of the integrated MSMEs support programme were drawn from six Metropolitan, Municipal, and District Assemblies (MMDAs) – Sagnerigu, Jomoro, Ketu South, Sefwi Wiawso, Kumasi, and Kassena-Nankana West.

Dr Angela Lusiga, UNDP Resident Representative to Ghana, expressed confidence in the programme helping address the financing gap for MSMEs, and for them to be fully prepared to participate in AfCFTA.

‘At UNDP
, we believe that providing integrated support to small businesses particularly those owned by women and youth is key to transforming the economy and unlocking the productivity of the informal sector. This will create decent jobs and break the cycle of poverty and inequality,’ she said.

She said UNDP through a study observed the lack of knowledge by many Ghanaian MSMEs about the free trade agreement, leading to the provision of the US$70,000 grant.

‘We started with a survey where we asked MSMEs what they knew about AfCFTA. We found out that there were many enterprises that didn’t even know about AfCFTA. Most of them didn’t know much about the opportunities and products that are allowed under the AfCFTA,’ she said.

Dr Lusiga said UNDP had effectively addressed the awareness deficit about the AfCFTA with the beneficiary MSMEs through working with the National Coordination Office of AfCFTA to spread awareness of the agreement in different districts.

Madam Audrey Abakah, Head of SME Agency at ABSA Bank, encou
raged MSMEs to have proper accounts, as it remained a major access to finance constraint in the country.

She urged the MSMEs to fully apply the concepts taught under the programme to enhance their enterprises.

Kofi Ansong Denkyi, the Chief Operating Officer of Empretec Ghana, said the expansion of an enterprise transcended access to grants, noting that the mindset of the entrepreneurs was key to the success of the enterprises.

‘Money alone doesn’t make entrepreneurs successful. What makes entrepreneurs successful is their mindset and behavior. So, I urge the awardees to continue to cultivate the right mindset and behaviour to become growth-oriented businesses,’ he said.

He also encouraged them to prepare for risks, saying some businesses could derail the growth of their enterprises if they did not have the mental fortitude to overcome them.

Source: Ghana News Agency

Ghana, through the second phase of the Strategic Sector Cooperation, is aiming to build a robust and comprehensive national data system to promote evidence-based planning and policy decision-making.

The Ghana Statistical Service (GSS), Statistics Denmark, and the Denmark Embassy in Ghana, have signed a three-year agreement (2024-2026) to make the production of the national statistics system achievable.

Professor Samuel Kobina Annim, Government Statistician, signed for Ghana, while Prof Tom Nørring and Mr Carsten Zangenberg signed for the Danish Embassy and Statistics Denmark, respectively.

The signing ceremony took place at the Marriot Hotel in Accra on Wednesday, March 13.

Through this collaboration, the country would leverage survey and administrative data efficiently to address existing data gaps through digitalisation, while ensuring a progress towards a greener statistic period.

Speaking at the ceremony, Professor Samuel Kobina Annim, Government Statistician, stated that the project would enable th
e evaluation of administrative data by pulling all data sets together.

He said it had become necessary to reawaken the national data and statistic system to bridge the disconnection of data at various levels to engender a proper evaluation of government interventions and help in policy decision-making.

Prof Annim cited the example of the phase two of the Planting for Food and Jobs (PFJ II), which the sector Minister had announced was to benefit some two million agricultural farmers to explain the essence of the national statistic system.

‘If that two million does not translate into statistics that sits in our social register, we wouldn’t have any basis to evaluate it, and this is what administrative data does,’ he said.

‘So, once there’s a national intervention reaching out to a defined number of people, our definition of reawakening the national system is pulling all the datasets together,’ he stated.

That, Prof Annim said, would ensure, for example that, ‘data on the two million people can be reconcile
d with people benefiting from other interventions such as School Feeding and the Livelihood Empowerment Against Poverty (LEAP)’.

The Government Statistician also noted that the second phase of the project would focus on people-centred statistics with disaggregation and multiple indicators to measure the quality of life at all levels.

It would, therefore, help make statistics pro-poor, inclusive, and help in making better policy decisions to address environment, including climate change effects, and pandemic preparedness, he said.

He also stated that Metropolitan, Municipal and District Assemblies (MMDAs) as well as Ministries, Departments and Agencies (MDAs) would be able to get a better working relationship with all players within the national statistical system.

Prof Tom Nørring, the Danish Ambassador to Ghana, said there were endless opportunities in integrating already existing administrative data across authorities and ministries by a national statistics bureau.

Mr Carsten Zangenberg, Head of Commun
ication and Sales, Statistics Denmark, noted that the statistics produced through the partnership would help provide facts and reliable evidence for planning.

‘We have to work together for the next few years because we need good decisions, which are gotten from data,’ he said.

Source: Ghana News Agency

Alhaji Rashid Bawa, Ghana’s High Commissioner to Nigeria, has passed on.

Rashid Bawa, who was also the Akan New Patriotic Party (NPP) Parliamentary Candidate (PC), is reported to have died in Nigeria on Thursday.

He had been an envoy to that country since 2017 when the NPP-led-Government returned to power.

Mr Frank Adjei Worlanyo, the Akan Constituency Communication Officer, NPP, confirmed his passing to the Ghana News Agency (GNA) in a telephone interview.

During the NPP Parliamentary primary on December 2 , 2023, Alhaji Bawa polled 492 votes to beat his closest contender, Mr Tassah Safiwu, who had 103 voted, with Alhaji Tanko Yakubu, the third contender, garnering 17 votes.

He was also the NPP parliamentary candidate in 2020, who secured 13, 300 votes, representing 40.78 per cent, while the National Democratic Congress’ candidate, Mr Yao Gomado, had 19,317 votes, representing 59.22 per cent to win the seat.

Alhaji Bawa, a legal practitioner, won the Akan seat as Independent Candidate in the 2000 elec
tion.

He was Ghana’s Ambassador to Saudi Arabia from 2005-2008.

Source: Ghana News Agency

VFS Global has affirmed its commitment to continuous engagement in developing innovative solutions to enhance the overall visa application experience.

Mr Hariprasad?Viswanathan, the Head- Sub-Saharan Africa, VFS Global said applicants were regularly provided information about visa processing timelines, data protection and privacy assurance, how to detect fraud and the organisation’s value-added services are regularly communicated via key touchpoints.

Mr Viswanathan was speaking at a?Media outreach session?on the?2023 travel trends and what to expect in the upcoming peak season in Accra.

?He advised applicants to be sure to carry all the requisite documentation, including a printout of the checklist, to submit along with the duly filled application form as well as check the VFS Global website before planning to apply on important requirements.

He said 2023 was the year of a significant rise in global outbound travel across the world, including in countries like Ghana.?

The Head said the surge in travel a
ctivity that began in 2022, continued in 2023 with visa application volumes at VFS Global in Ghana nearly doubling on a year-on-year basis.

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‘Applications processed at the Ghana Passport Premium Application Centres run by VFS Global have seen a 30 per cent rise during the year, which underlines the desire to travel overseas by the residents of Ghana,’ he added. ?

He said that based on the initial trends, the expectation was the increase in international travel in 2022 and 2023 to continue this year as well.

He said outbound travel had rebounded in 2023 to pre-pandemic levels with tourism, family visits, and educational as well as business trips being the common reasons for outbound travel from Ghana.

He said seeing the surge in demand for outbound travel and with limited appointment slots available, they encouraged their applicants to apply for their visas as early as possible like their flight and hotel bookings.

He said?Artificial Intelligence, machine learning, and data analytics would fundamentally
change border management, enabling Smart Borders a few years from now.

He said the need for safe travel had led to greater acceptance of contactless and Do it Yourself technologies.

He said overall securing just the algorithms and data sets was not enough, rather, an end-to-end approach in applying security by design should be adopted and managed on an ongoing basis.

He said the recent rise in eco-conscious travellers, who sought to travel sustainably was also changing, how businesses and locations were operating now from their ‘business as usual attributes to looking to transform journeys by offering meaningful experiences.’

Mr Viswanathan said demand for personalised services which prioritise safe travel E-Visa was emerging as a revolutionary service in the travel domain where travellers could apply for their visa from the location of their choice by leveraging on the highly secure and smart solution developed by VFS Global.

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‘Our Visa At Your Doorstep service and Premium Lounge services witnessed a
strong demand last year,’ he added.

Madam Cleopatra Avenorgbo, Deputy General Manager-Operations for VFS Global-Ghana, said the Driver and Vehicle Licensing Authority in collaboration with Bridge Direct and VFS Global had been awarded a contract to enhance service delivery experience with Premium DVLA Centers.

She said the services?would include Driver’s license renewal, replacement, missing license, upgrading of licence and vehicle registration.

She said VFS Global was also awarded the contract to open new passport Application Centres across the country in 2018.

?’It currently operates in three locations in Accra, Kumasi and Tamale,’ she added.

Source: Ghana News Agency

The Gwollu and Buoti communities in the Sissala West District of the Upper West Region have been provided with a mill for processing groundnut to aid the women to easily extract the oil.

The Community Development Alliance (CDA), a non-governmental organisation in the region commissioned the two state-of-the-art groundnut mills at Gwollu and Buoti at separate events.

Mr Suleman Bipuah, the Project Manager, CDA, explained that the initiative was part of the Ghana Trade and Investment Activity (GTIA), aimed to support women engaged in groundnut cultivation and its value chain to make the best out of their trade.

The GTIA activity focuses on supporting women in trade, particularly those involved in groundnut cultivation and its value chain.

He underscored the importance of women’s economic empowerment and its ripple effect on nutrition, health, education, and overall societal well-being.

Mr Bipuah expressed gratitude to the USAID for assisting to procure and install three groundnut processing machines, and
training the women in quality standards, traceability, branding, marketing, and financial management.

The partnership with the USAID/Ghana Feed the Future had ensured direct support of 650 women groundnut farmers, aggregators, and processors to increase output, value addition, improve quality, packaging, branding and strengthening market linkages for increased sales, incomes, and dignified work opportunities.

He said the CDA also supported the women groups to register cooperative societies, developed business plans, acquire and install three efficient groundnut processing machines to increase productive capacity in the Sissala West and Lambussie districts of the Upper West Region.

Madam Suraj Cecilia, the Secretary to the Buoti Women’s Group, expressed her heartfelt gratitude to the NGO for the groundbreaking project.

She encouraged women from other communities to follow suit and collaborate with the CDA to foster unity and collective development.

Madam Rahinatu Mustapha, a resident of Buoti, shared her
experience of previously carting groundnuts to distant communities for grinding, incurring additional costs and facing logistical challenges and commended the NGO for the support to make her work easier.

Mr Mohammed Adams Sukparu, the Member of Parliament, Sissala West, commended CDA for the initiative to empower the women financially and pledged to engage with the women to ensure the sustainable use of the mills to achieve the desired impact.

Source: Ghana News Agency

Mr Geoffrey Kini, the Member of Parliament (MP) of Nkwanta South, said modern information and communication technology (ICT) skills were important and students must be equipped with the knowledge and resources to succeed in the digital economy.

Mr Kini highlighted the role of technology in driving innovation and economic growth and called for investment in the education of young people in technology to brighten the country’s future.

He said this at the Ntruboman Senior High School (SHS) in the Nkwanta South Constituency of the Oti Region when he donated a set of 15 brand new computers in his bid to enhance the learning of ICT.

The donation, among other things, aimed at ensuring students had access to the relevant tools to excel in the digital age and formed part of the MP’s commitment to supporting education and empowering young people in his constituency.

Mr Kini said the computers would make a positive impact on the entire school community to enhance students’ learning experiences, develop essential di
gital skills, and prepare them for the challenges of the 21st century.

Over the years he had remained a strong advocate of improving educational opportunities for students in Nkwanta South and had consistently worked towards providing them with the resources they need to succeed, he said.

Mr Charles Nyame Kormisah, the Headmaster of the school, expressed gratitude to the MP for his generosity and for recognising the importance of ICT in education.

He said the donation was a step in the right direction towards bridging the digital divide and ensuring that all students had access to the tools they needed to thrive in the digital age.

The gesture was a testament to the MP’s commitment to developing education in Nkwanta South and empowering young people to reach their full potential, Mr Komisah said.

The school authorities and students expressed gratitude and appreciation to the benefactor and indicated that the computers would enhance their learning experience in ICT.

They, however, appealed to the MP and
the Government for a school library and other infrastructure to promote teaching and learning.

Source: Ghana News Agency

Zenith Bank, one of Ghana’s leading financial institutions, has opened its newest branch in Techiman, in the Bono East Region of Ghana.

Strategically located in the heart of Techiman, this expansion underscores Zenith Bank Ghana’s commitment to serving communities across Ghana and fostering economic growth in the region.

With the opening of the Techiman branch, the Bank now operates 43 business locations throughout Ghana, demonstrating its continued investment in the country’s economic prosperity.

This new location will not only serve as a hub for banking services but also as a catalyst for empowering local businesses and driving entrepreneurship.

Mr. Henry Onwuzurigbo, Managing Director/Chief Executive Officer of Zenith Bank Ghana, in an address during a ceremony to formally open the Techiman branch for active business, expressed excitement and touted the community’s importance to the Bank.

‘Techiman is a highly central business hub in Ghana, with immense potential for growth and development. We are th
rilled to be part of this vibrant community and provide first-class banking services to individuals and businesses in Techiman and its surrounding areas,’ he said.

He said that Zenith Bank Ghana prioritizes customer satisfaction and strives to tailor our products and services to meet the diverse needs of their clients.

‘From specialized accounts for women-owned and women-led businesses to innovative solutions for Ministry of Micro, Small and Medium Enterprises (MSMEs), we are committed to supporting the growth and success of our customers,’ he added.

Mr Onwuzurigbo said as part of its efforts to support MSMEs in Ghana, Zenith Bank had partnered with the African Guarantee Fund (AGF) to provide accessible credit solutions to entrepreneurs.

Through this collaboration, Zenith Bank Ghana and AGF aim to alleviate the challenges of securing collateral, particularly for women-owned and women-led businesses as well sustainable businesses, where 70 per cent of the collateral is absorbed by AGF and the women-owned a
nd women-led businesses pay 30 per cent of the collateral, thereby fueling economic growth and fostering a conducive business environment.

‘We believe in the power of collaboration and are dedicated to empowering MSMEs to thrive,’ Mr. Onwuzurigbo said.

He said by offering tailored financial solutions and ongoing support, the Bank aimed to enable businesses in Techiman and beyond to reach their full potential.

In addition to its comprehensive product and service offerings, Zenith Bank Ghana prides itself on leveraging technology to enhance banking accessibility and convenience for all customers.

With State-of-the-Art applications and digital platforms such as the Bank’s USSD *966#, ZMobile Ghana App, and Internet Banking platforms for corporate entities and individuals, Zenith Bank Ghana ensures a seamless banking experience for individuals and businesses alike.

The opening of the Techiman branch marks a significant milestone for Zenith Bank Ghana as it continues to expand its footprint and make a positiv
e impact on communities across Ghana.

Assistant Superintendent of Police (ASP) Appiah Danquah encouraged staff to make physical and cyber security a priority in their service provision.

He said this would ensure the safety of customers’ funds and project the Bank positively to prospective clients.

The event was graced by members of the clergy, police service, well-established business owners in Techiman as well as representatives from the Techiman Traditional Council.

Source: Ghana News Agency

Zenith Bank, one of Ghana’s leading financial institutions, has opened its newest branch in Techiman, in the Bono East Region of Ghana.

Strategically located in the heart of Techiman, this expansion underscores Zenith Bank Ghana’s commitment to serving communities across Ghana and fostering economic growth in the region.

With the opening of the Techiman branch, the Bank now operates 43 business locations throughout Ghana, demonstrating its continued investment in the country’s economic prosperity.

This new location will not only serve as a hub for banking services but also as a catalyst for empowering local businesses and driving entrepreneurship.

Mr. Henry Onwuzurigbo, Managing Director/Chief Executive Officer of Zenith Bank Ghana, in an address during a ceremony to formally open the Techiman branch for active business, expressed excitement and touted the community’s importance to the Bank.

‘Techiman is a highly central business hub in Ghana, with immense potential for growth and development. We are th
rilled to be part of this vibrant community and provide first-class banking services to individuals and businesses in Techiman and its surrounding areas,’ he said.

He said that Zenith Bank Ghana prioritizes customer satisfaction and strives to tailor our products and services to meet the diverse needs of their clients.

‘From specialized accounts for women-owned and women-led businesses to innovative solutions for Ministry of Micro, Small and Medium Enterprises (MSMEs), we are committed to supporting the growth and success of our customers,’ he added.

Mr Onwuzurigbo said as part of its efforts to support MSMEs in Ghana, Zenith Bank had partnered with the African Guarantee Fund (AGF) to provide accessible credit solutions to entrepreneurs.

Through this collaboration, Zenith Bank Ghana and AGF aim to alleviate the challenges of securing collateral, particularly for women-owned and women-led businesses as well sustainable businesses, where 70 per cent of the collateral is absorbed by AGF and the women-owned a
nd women-led businesses pay 30 per cent of the collateral, thereby fueling economic growth and fostering a conducive business environment.

‘We believe in the power of collaboration and are dedicated to empowering MSMEs to thrive,’ Mr. Onwuzurigbo said.

He said by offering tailored financial solutions and ongoing support, the Bank aimed to enable businesses in Techiman and beyond to reach their full potential.

In addition to its comprehensive product and service offerings, Zenith Bank Ghana prides itself on leveraging technology to enhance banking accessibility and convenience for all customers.

With State-of-the-Art applications and digital platforms such as the Bank’s USSD *966#, ZMobile Ghana App, and Internet Banking platforms for corporate entities and individuals, Zenith Bank Ghana ensures a seamless banking experience for individuals and businesses alike.

The opening of the Techiman branch marks a significant milestone for Zenith Bank Ghana as it continues to expand its footprint and make a positiv
e impact on communities across Ghana.

Assistant Superintendent of Police (ASP) Appiah Danquah encouraged staff to make physical and cyber security a priority in their service provision.

He said this would ensure the safety of customers’ funds and project the Bank positively to prospective clients.

The event was graced by members of the clergy, police service, well-established business owners in Techiman as well as representatives from the Techiman Traditional Council.

Source: Ghana News Agency

The STAR-Ghana Foundation, a centre for active citizenship and philanthropy, has challenged citizens, especially beneficiaries of social protection programmes, to exact accountability from the government if they feel aggrieved.

Dr Ernestina Tetteh, the Project Manager of the Foundation, noted that social protection was a right citizens must enjoy and not a favour from the government.

‘When the politicians come to you, don’t be deceived by the petty gifts they give to you, especially in the campaign season,’ she said.

‘Don’t approach it like you are seeking favour from them; respectfully, but firmly, make demands when you feel it is necessary because you deserve it.’

Dr Tetteh was addressing a Town Hall meeting in Cape Coast to officially commence a nationwide manifesto influencing initiative and solicit concerns of citizens to be addressed by the political parties in their Election 2024 Manifesto.

The consultative exercise is a forum to share challenges in the areas of health, education and social prote
ction to influence the direction of political party manifestos.

Three policy briefs on health, education and social protection would be produced based on the outputs and presented to the political parties and their presidential candidates.

Successive governments have, over the years, introduced various social protection interventions including the National Health Insurance Scheme (NHIS), Livelihood Empowerment Against Poverty (LEAP), school feeding, and free maternal care for the underprivileged.

Dr Tetteh said her observations showed that most of the interventions were struggling owing to issues such as insufficient budgetary allocations and delays in releasing those monies and blamed weak coordination among the various public institutions responsible for executing these initiatives.

While the NHIS, for instance, was almost always in arrears, the LEAP had a funding gap of about GHC400 million.

The Project Manager expressed worry over the poor quality of food served in some basic schools under the School
Feeding Programme due to delays in payment.

She urged the authorities to increase budgetary allocations for social protection programmes and endeavour to release them promptly to give relief to the beneficiaries.

Dr Tetteh advocated the provision of complementary social protection for the vulnerable, marginalised and excluded groups.

There was also the need to expand social protection for informal sector workers to prevent vulnerabilities, she said and called for strong complaint and accountability mechanisms to ensure effective implementation of such policies.

The vulnerability, typically attributed to rural communities, was increasingly becoming an urban phenomenon largely due to the COVID-19 pandemic, which ravaged many urban communities.

She, therefore, called for special attention for peri-urban dwellers in the formulation and implementation of social protection programmes to mitigate their struggles.

Source: Ghana News Agency

The STAR-Ghana Foundation, a centre for active citizenship and philanthropy, has challenged citizens, especially beneficiaries of social protection programmes, to exact accountability from the government if they feel aggrieved.

Dr Ernestina Tetteh, the Project Manager of the Foundation, noted that social protection was a right citizens must enjoy and not a favour from the government.

‘When the politicians come to you, don’t be deceived by the petty gifts they give to you, especially in the campaign season,’ she said.

‘Don’t approach it like you are seeking favour from them; respectfully, but firmly, make demands when you feel it is necessary because you deserve it.’

Dr Tetteh was addressing a Town Hall meeting in Cape Coast to officially commence a nationwide manifesto influencing initiative and solicit concerns of citizens to be addressed by the political parties in their Election 2024 Manifesto.

The consultative exercise is a forum to share challenges in the areas of health, education and social prote
ction to influence the direction of political party manifestos.

Three policy briefs on health, education and social protection would be produced based on the outputs and presented to the political parties and their presidential candidates.

Successive governments have, over the years, introduced various social protection interventions including the National Health Insurance Scheme (NHIS), Livelihood Empowerment Against Poverty (LEAP), school feeding, and free maternal care for the underprivileged.

Dr Tetteh said her observations showed that most of the interventions were struggling owing to issues such as insufficient budgetary allocations and delays in releasing those monies and blamed weak coordination among the various public institutions responsible for executing these initiatives.

While the NHIS, for instance, was almost always in arrears, the LEAP had a funding gap of about GHC400 million.

The Project Manager expressed worry over the poor quality of food served in some basic schools under the School
Feeding Programme due to delays in payment.

She urged the authorities to increase budgetary allocations for social protection programmes and endeavour to release them promptly to give relief to the beneficiaries.

Dr Tetteh advocated the provision of complementary social protection for the vulnerable, marginalised and excluded groups.

There was also the need to expand social protection for informal sector workers to prevent vulnerabilities, she said and called for strong complaint and accountability mechanisms to ensure effective implementation of such policies.

The vulnerability, typically attributed to rural communities, was increasingly becoming an urban phenomenon largely due to the COVID-19 pandemic, which ravaged many urban communities.

She, therefore, called for special attention for peri-urban dwellers in the formulation and implementation of social protection programmes to mitigate their struggles.

Source: Ghana News Agency

By Eratus Ndueh

The Central African Stock Exchange (BVMAC) plans on splitting its shares to make financial market participation more accessible to low-income earners in the Central African sub-region. The pronouncement was made by the director general of BVMAC, Louis Banga Ntolo, during the 10th edition of ‘Ring the Bell for Gender Equality,’ an event led by UN Women to promote gender equality and women’s empowerment.

According to the Director General, this reform is mentioned in their plan of action for the year 2022-2026 and it aimed at facilitating the financial inclusion of low-income earners especially for marginalized groups such as women, youths, and operators in the informal sector without them necessary needing a bank account before they trade in the stock exchange market.

To ensure the success of this project, BVMAC plans on working with fintech companies operating in the field of mobile money, a payment method approved by the Bank of Central African States (BEAC), which identifies individuals through a microchip.

‘We will conduct splits similar to those in other stock exchanges, allowing shares listed on the BVMAC to be priced at CFA 500 without altering the rights associated with a security. Thereby facilitating the purchase of assets with an electronic wallet,’ the director general explained.

This ongoing reform at BVMAC will also have a positive impact on Cameroonians as it will increase the rate at which they invest in the stock exchange market.

‘This measure is going to ensure that more people get interested in investing in the stock market. Instead of sending the money to a ‘njangi’ ( common meeting group) each month, you can use the money to buy shares in the Central African Stock Exchange market, and then earn huge at the end of the year. This means that more people are going to be using the formal financial system to the benefit of local businesses who will be able to raise funds to expand their operations,’ Henri Kouam an economist expounded.

According to data from the Bank of Central African States (BEAC), the financial inclusion rate was 32% in the CEMAC zone in 2021. To increase this rate to 60% by 2027, the central bank is focusing on innovation and expanding digital financial services in the sub-region.

Source: Cameroon News Agency

By Eratus Ndueh

The Central African Stock Exchange (BVMAC) plans on splitting its shares to make financial market participation more accessible to low-income earners in the Central African sub-region. The pronouncement was made by the director general of BVMAC, Louis Banga Ntolo, during the 10th edition of ‘Ring the Bell for Gender Equality,’ an event led by UN Women to promote gender equality and women’s empowerment.

According to the Director General, this reform is mentioned in their plan of action for the year 2022-2026 and it aimed at facilitating the financial inclusion of low-income earners especially for marginalized groups such as women, youths, and operators in the informal sector without them necessary needing a bank account before they trade in the stock exchange market.

To ensure the success of this project, BVMAC plans on working with fintech companies operating in the field of mobile money, a payment method approved by the Bank of Central African States (BEAC), which identifies individuals through a microchip.

‘We will conduct splits similar to those in other stock exchanges, allowing shares listed on the BVMAC to be priced at CFA 500 without altering the rights associated with a security. Thereby facilitating the purchase of assets with an electronic wallet,’ the director general explained.

This ongoing reform at BVMAC will also have a positive impact on Cameroonians as it will increase the rate at which they invest in the stock exchange market.

‘This measure is going to ensure that more people get interested in investing in the stock market. Instead of sending the money to a ‘njangi’ ( common meeting group) each month, you can use the money to buy shares in the Central African Stock Exchange market, and then earn huge at the end of the year. This means that more people are going to be using the formal financial system to the benefit of local businesses who will be able to raise funds to expand their operations,’ Henri Kouam an economist expounded.

According to data from the Bank of Central African States (BEAC), the financial inclusion rate was 32% in the CEMAC zone in 2021. To increase this rate to 60% by 2027, the central bank is focusing on innovation and expanding digital financial services in the sub-region.

Source: Cameroon News Agency