Financial literacy key to capital market growth – GSE

  • as it partners YIN to launch programmes for youths

The future and growth of the capital market and economy at large, according to the Ghana Stock Exchange (GSE) and the Young Investors Network (YIN), require stepping-up financial education for youths in the country.

To this end, the duo has launched investment educational programmes for youths to ensure financial literacy among young folk.

The programmes include an investment educational tour to tertiary institutions, aimed at educating the students about savings and investment and introducing them to operations of the capital market and its key operators, as well as various career options in the industry.

It will also organise a stock market pitch competition, which will see participants turn an investment idea into stock by recommending to investors why they should invest in a particular stock, based on their research findings.

Thirdly, a capital market quiz targetted at Senior High Schools to raise awareness among students of capital market activities and whip up their interest in investment and entrepreneurship.

Speaking at the virtual launch, Head of Listing at Ghana Stock Exchange, Joyce Esi Boakye, noted that the GSE will further leverage its digital platforms and expertise of its partners to introduce learning tools and investment educational programmes for youths.

“Our interest in these youth investment educational programmes emanates from the fact that we owe it as a duty to step up financial literacy in order to develop the next generation of investors to support growth of the capital market and national economic development.

“The youth, who are the future leaders, need to understand the intermediary role financial markets play in moving surplus funds to deficit fund units to make funds available for individuals, institutions and governments to expand and grow to support the national economy,” she said.

For his part, Executive Director of YIN, Kofi Busia Kyei, reiterated that for the country to achieve full economic transformation, young people should be taken through core details of what the financial market is about.

He believes it will guide them to make informed investment decisions, which will go a long to prevent them from falling prey to Ponzi schemes.

“These young people will grow to become business owners and conduct best practices in corporate governance.   Their only source of funding to expand their business will be via the capital market through equities and bonds.

“This will boost profits of businesses – which will help in improving tax revenues of governments, improve the country’s employment situation, and improve livelihoods for the entire population,” he said.

The Deputy Director-General Finance of the Securities and Exchange Commission, Paul Ababio, said with the country’s youth population and zeal to promote entrepreneurship, financial education must be prioritised.

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