Contents

01
Why invest in
02 Sector
03 Sector
Ghana overview opportunities

Page 3 Page 6 Page 47

04
Key investment
05
Testimonials
06Contact us
considerations

Page 52 Page 54 Page 56

07Appendix

Page 58
Page 2
 01
Why Invest in Ghana

Page 3
 Why invest in Ghana
Country overview

o Formerly known as the Gold Coast, Ghana was the Internal infrastructure
first sub-Saharan nation to gain independence from
colonial rule in 1957.
o Ghana is credited as being one of the most stable Total land Overview: Ghana has total land area of 238,537
democracies in Africa, having successfully area sq.km
conducted 8 national elections and recorded no Ghana has 16 administrative regions and 261
incidence of a coup d'état since 1992.
district assemblies.
The area is currently connected to the following
Airports
• Ghana’s electricity supply is derived from
Electricity hydropower generated from the Akosombo, Bui
► 1 international airport supply Power and Kpong dams, and 10 thermal plants
► 5 domestic airports at Aboadze in Western Region.
• According to World Bank, Ghana has an 86.63%
Railway (2021) access to electricity rate.

Water Water is provided to citizens through the Ghana

► 3 major railway networks with a supply Water Company Limited, Community Water and
total track length of 1,300 km
Sanitation Agency and private water producers.

Dry ports o Ghana is geographically closer than any other

Locational country to the center of the earth.
advantage o Ghana has 2 harbors with one being the
► Tema Port largest in West Africa, making Ghana the
► Takoradi Port gateway to West Africa.

Road network

► Main roads: 67,291 Km

► Main arteries : 12,800 Km
► Paved roads: 3,800 Km

Source: Oxford Economics, Ghana Statistical Service, UNCTAD, Bank of Ghana, Doing Business Report (2020), World Bank
Page 4
Why invest in Ghana
Investment attractions
2nd largest economy in West
Rich in natural resources Preferred tourism destination Youthful population
Africa

o Ghana has an active retail market and o Ghana was the largest (No.1) o International arrivals of tourist o Ghana is blessed with a very youthful
healthy consumption levels. Fitch producer of gold in Africa and 6th increased from 932,579 in 2016 to population, about 67% of the
reports, household spending is largest in the world in 2021. 1,130,307 in 2019, however 2020 population is within the ages of 15 to
expected to increase from US$55bn o 13,000 metric tonnes of manganese saw a reduction to 355,108 due to 64 years.
in 2021 to USD81bn in 2025. reserve. lockdown measures in response to
o 16.86 million tonnes of high-grade Covid -19. o Government initiative such as free
o AfCFTA presents an opportunity for trihydrate bauxite mined since 1997. basic and secondary has ensured a
intra-regional growth by leveraging o Newly discovered deposits of lithium o As at September 2021, international 69.8% literacy rate for citizens who
access to common markets and in 2021 amounting to 30.1million tourist arrivals increased by 18% are 6 years and older as at 2021.
knowledge transfer through labour tonnes, setting Ghana up to become while domestic tourists grew by 58%.
mobility, thereby attracting foreign West Africa’s first lithium producer.
direct investments into the region.

o The AfCFTA secretariat is located in

Ghana.

Investor-friendly government
Stable political environment Top investment destination Agrarian economy
initiatives

o Ghana is ranked the second most o Government has initiated a plethora o Foreign Direct Investment (FDI) has o Ghana is endowed with vast arable
peaceful country in Africa and the of incentives to ensure a conducive averaged $2.72b from 2017 to lands rich in agriculture.
38th most peaceful country in the and enabling business environment.
world as per the 2021 Global Peace 2021, suggesting stability in the
Index. o Government incentives include tax inflow of capital with investment o In 2020, Ghana was the 2nd largest
holidays, rebates, provision of focus in oil and gas, mining (including producer of cocoa in the world, the
o Due to provisions made in the industrial parks, provision of finance gold and manganese), and agriculture 4th largest producer of cassava in the
constitution of Ghana (article 20) and through partnering agencies and
Free Zones Act (Act 504) there is a interest subsidies. (cocoa). world.
reduced threat of nationalism of o Ghana attracted US$2.65bn in FDI
private businesses. o Ghana has double taxation o Ghana is blessed with fertile land for
agreements with the United Kingdom, inflows in 2020, one of the highest
South Africa and other EU countries. the production of maize, tomato, rice
amount in West Africa.
among many other food crops.

Page 5 Source: Oxford Economics, Ghana Statistical Service, United States Geological Service, Global Peace Index, World Bank, Visit Ghana (Tourism Report 2020), Ghana Investment Promotion Centre, Ghana Bauxite
Company Ltd
 02
Sector overview

Page 6
Sector overview: Snapshot of Ghana’s financial sector

The financial sector is home to domestic and international banks, insurance providers, asset managers and a stock exchange. After the lockdown arising from Covid-19
pandemic in 2020, the industry has demonstrated resilience with the various sub-sectors recording growth. The overall outlook for the industry is upbeat supported by
positive economic and demographic trends pointing towards an expanding and increasingly affluent potential consumer base over the medium term.

Bank of Ghana National Insurance Securities and Exchange National Pensions Regulatory
Banking regulator Commission Commission Authority
Insurance regulator Capital market regulator Pensions regulator

Total life GWP1 Total non-life GWP1

Insurance
GH₵2.5b GH₵2.2b
Banking

23 25 11 3
FY21 FY21

Number of life insurers Number of non-life insurers

Banks
Savings and
loans
Finance
houses
Finance and
leasing 22 29
institutions companies FY21 FY21
1Gross Written Premiums
Capital market

30 companies 6 companies
listed on Ghana listed on Ghana
GH₵11b GH₵22b

Pensions
Stock Exchange Alternative Market

Total assets – BNSSS2 Total assets - private

75 GH₵64.5b
participants on
in market
Ghana Commodity
Exchange
capitalization
38 16
Fund managers Fund custodians
Page 7 , 2Basic National Social Security Scheme
Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, Bank of Ghana, National Pensions Regulatory Authority, Securities and Exchange Commission, 4 th Quarter 2021 Newsletter, Ghana Stock Exchange
Sector overview: Snapshot of Ghana’s financial sector

Financial system of Ghana

Bank and non-bank Capital and money Insurance sector Pensions sector
financial sector markets sector

Securities and Exchange National Insurance National Pensions

Bank of Ghana
Commision Commission Regulatory Authority

Deposit-taking Non-Deposit Ghana Private

Insurance companies Mandatory Tier 1
institutions taking institutions Stock Exchange pension schemes

Universal Finance Brokerage Insurance Corporate

SSNIT1
banks houses firms brokers trustees

Leasing Investment management Reinsurance Corporate

Rural banks custodians
companies companies brokers

Savings & Microfinance Insurance Pension fund

Custodians managers
loans companies institutions agents

Microfinance Forex Issuing Reinsurance

institutions bureaux houses companies

Credit reference Other insurance Sector Regulator Constituent

bureaux intermediaries
1Social Security National Insurance Trust
Page 8
Source: Financial Stability Review 2020, Bank of Ghana
 Banking sector

Page 9
Sector overview – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Banking sector growth trend in GH₵b

Banking sector key statistics 179.8
Bank of Ghana 149.3
• Founded in 1957 and regulates AB: 1,225 branches
A: Total deposits of GH₵121b 129.1 121.1
107.3 103.8
financial institutions and banks 80.9
93.2
83.5
in Ghana. 68.3
Dec B: Total assets of 58.3
2021 B GH₵180b
51.4
• It also oversees monetary
policies and advises the
government of Ghana on their C C: Capital adequacy ratio of
implementation. 2016 2017 2018 2019 2020 2021
19.6%1
Total asset Total deposit

Provision of loan advances to both

Products and Services offered by the

Loans
individuals and corporations
offered by the

• Financial and insurance activities contributed to 3.7% of GDP in 2021.

Range of debit, credit and prepaid
Microfinance
Debit Cards cards make every transaction fast, • Deposits continue to drive the funding of total assets with a strong growth of
servicesSector

easy and safe 16.7%, increasing from GH¢103.8 billion in December 2020 to GH¢121.1 billion
banking sector

in December 2021.
Products andBanking

• The industry’s shareholders’ funds boast a solid position, indicative of adequate

Bancassurance Distribution of insurance products,
capital buffers within the banking sector to withstand shocks.
using a bank as a channel

Financing opportunities for

Microfinance unemployed or low-income
individuals

1Industry Capital Adequacy Ratio regulatory floor is 11.5%

Page 10 Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, Bank of Ghana
Sector overview – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Non-performing loans trend in % Loan advances trend in GH₵b

Average NPLs
52.3 53.8
17.0% 22.7%

FY16A – FY21
47.8

Average total advances 18.2% 42.7

17.3%
GH₵49b 13.9%
14.8% 15.2%
37.7
35.5
FY16A – FY21
2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021
Average cost to income ratio

70.8% Cost to income trend in % Capital adequacy ratio trend in %

FY16A – FY21
84.3%
81.2% 79.8% 21.9%
79.2%
Average capital adequacy ratio1
19.8% 19.6%
19.1%
50.9%
FY16A – FY21
49.6% 17.6% 17.9%
17.5%
Contribution to GDP

3.7% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021

FY21

Page 11 1Industry capital adequacy ratio regulatory floor is 11.5%

Source: Bank of Ghana, Ghana Statistical Services
Sector overview – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Highlights on Monetary Policy Rate (MPR)

The MPR is the benchmark rate that signals the stance of MPR Historical Trend (2017 – 2021)
monetary policy and anchors short-term market interest rates
to achieve the primary objective of price stability.

25.5%

The monetary policy rate as of December 2021 was

14.5%.
20.0%

The policy rate declined over the last 5 years due to

16.0% 16.0%
improved outlook on growth and inflation.
14.5%
2017 2018 2019 2020 2021

In the last year, Bank of Ghana cited continued policy

support and increased optimism about the COVID-19
vaccinations as significantly improving the outlook and
resulting in upward revisions of global growth
projections.

Page 12 Source: Bank of Ghana

Key developments - Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

The E-Cedi

01
• Bank of Ghana (BoG) and its solutions partner Giesecke+Devrient (G+D) are currently piloting the e-Cedi as a means of payment by business and
individuals.
• The digital currency is intended serve as a digital alternative to physical cash, thus, driving the government’s cash lite agenda through promotion
of digital payments, while ensuring a secure and solid payment infrastructure in Ghana.

Establishment of Development Bank Ghana

02
• In 2021, the European Investment Bank signed an agreement with the Ministry of Finance to provide a €170m facility for the establishment of the
Development Bank Ghana (DBG).
• DBG is intended to be a model institution that supports the financial system to play its role in supporting the private sector to expand and create
jobs.

Liquidity Assistance Framework

03
• BoG introduced a new liquidity assistance framework in February 2021 designed to address weaknesses that were identified by the central bank
during the recent banking sector crisis, and aims to allow better liquidity planning by banks, savings & loans companies and finance houses while
protecting the balance sheet of the BoG. The framework is intended to mitigate the probable risk of settlement failures resulting from insufficient
balances.

LeapFrog’s investment in Fidelity Bank

04 • In August 2021, LeapFrog Investments, acquired a 16.94% stake in Ghana’s largest privately-owned bank, Fidelity Bank Ghana Limited
from Amethis, an investment fund manager dedicated to the African continent, and Edmond de Rothschild Equity Strategies (ERES), a mid-cap
growth and buy-out franchise.

Source: Ndowuona and Company, Merger and Acquisition Directives Revised by Bank of Ghana (BoG), Leapfrog Investments website

Page 13
Overview of key players – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Year established **Total assets **Total equity **Key shareholders

(GH₵m) (GH₵m)

1953 18,260 2,547 SSNIT, Government

of Ghana

Ecobank Transnational
1990 17,857 2,656
Incorporated

1917 16,038 2,296 Absa Group Ltd

Stanbic Africa
1999 14,043 1,953
Holdings Ltd

1998 13,350 1,242 Africa Capital LLC, KTH

Africa Investments

**Information is as at December 2021

Page 14 Source: Company annual reports

Regulatory framework – Banking sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

The Bank of Ghana (BoG) has responsibility for the legal and regulatory framework within which banks
in Ghana operate, which is designed to be consistent with the Basel Core Principles for effective
banking supervision. It is both the country's central bank and regulator, and as such, oversees banking
supervision. Key legislations

Functions of the Bank of Ghana

Bank of Ghana Act 2002, Act 612
Formulates and implements monetary policy aimed at
achieving the objects of the Bank

Bank of Ghana (Amendment) Act

Promotes, by monetary measure, the stabilization of the 2016 (Act 918)
value of the currency within and outside Ghana

Banks and Specialised Deposit-Taking

Institutions Act 2016, Act 930
Institutes measures that are likely to have a favourable effect on
the balance of payments, the state of public finances and the
general development of the national economy Non-Bank Financial Institutions
Act, 2008 (Act 774)

Regulates, supervises and directs the banking and credit system

and ensure the smooth operation of the financial sector Companies Act 179, 1963

Bank of Ghana Notices,

Issues and redeems currency notes and coins Directives/Circulars/Regulations

Payment Systems and Services Act,

Licenses, regulates, promotes and supervises non-banking 2019 (Act 987)
financial institutions

Page 15 Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, Bank of Ghana
Regulatory framework – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Guidance on setting up a bank in Ghana

3 Length of time for license

Months application decision
Including details of
key personnel,
Setting up a feasibility reports,
evidence of capital,
bank in Ghana Application of etc.
licence Minimum paid-up capital Initial licensing fee
GH₵ 400,000,000 GH₵ 100,000

Issuance is
02 04
contingent on
Interview
BoG’s satisfaction
of the organization of key
personnel
BoG may conduct an
appraisal to determine 01 03
and infrastructural that the representations
arrangements made by the applicant are
accurate Application processing fee Annual licensing fee
GH₵ 20,000 GH₵ 10,000

Provisions are based on the applicant

having an initial paid-up capital and will
maintain integrity, prudence and
competence

Page 16
Source: Bank of Ghana, Banks and Specialised Deposits Act. 2016 (Act 930)
 SWOT analysis – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Strengths Weaknesses
• Ghana has a population growing at 2.1% per annum with • A significant portion of the population remains unbanked
urbanization rate of 57.9%; it is expected that the as the financial inclusion rate remains relatively low at
population growth will increase the demand for financial 58%1.
capital. • 0ne of the biggest challenges to digitization is fraud
• The industry has risen to solid capitalization levels since which has the potential to deter customer interest and
the increase of the minimum capital requirement to deteriorate channel utilization.

S W
GH₵400m with a capital adequacy ratio of 19.6%, well- • The central bank’s business and consumer confidence
above the industry requirement of 11.5%. surveys, conducted in February 2022, revealed a
softening of sentiments with business confidence
• Efforts are being made in all sectors in the financial declining by a greater extent. While consumer confidence
industry to capture the unbanked population especially, as dipped by 0.7 percentage points, business confidence
is evidenced by the astronomical growth in mobile money declined by 9.6 percentage points. Consumers were
transactions over the last few years which grew from mainly concerned about the persistent increases in fuel
GH₵32.8b in December 2019 to GH₵82.9b in December prices, increases in transportation fares and rising
2021. inflation.

Opportunities
• The industry has seen strong banking sector asset growth
(y-o-y growth of 20.4% in 2021) and slowly improving
O T Threats
• E-levy tax of 1.5% on the value of digital transactions
credit quality.
that exceed a cumulative daily transactions value of
• Currency digitization efforts in the form of the e-Cedi GH₵100 per person could disincentivize investment into
proposal have the potential to drive low transaction costs, the digital payments sector.
improved security of payments, and higher monetary
transaction limits. • Apprehension concerning current technological
infrastructure to support the implementation of the
• Government is taking steps to encourage more foreign digital currency.
direct investment (FDI) in a range of sectors, for instance,
through the One District One Factory (1D1F) initiative, • Education efforts need to be ramped up to get the public
which is partnering with banks to provide loans to to understand the workings of the proposed digital
businesses. currency.

1The Global Findex Database 2017

Page 17 Source: Bank of Ghana, The Evolution of Bank of Ghana Policies on the Ghanaian Payment System, World Bank, Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, One District One Factory - 1D1F
 Insurance sector

Page 18
Sector overview – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

• The Ghanaian insurance sector grew from a premium base of GH₵ 3.9b in 2020 to GH₵4.7b in 2021 representing a 19.5% growth relative to 9.8% growth recorded in
2020.
• The non-life business contributes 47% of total premiums while the life business contributes 53% of total premiums.
• Insurance penetration stands at 1%, however, if health insurance and pensions are taken into consideration the rate of insurance penetration is estimated to be 3%.

Key financial highlights (2021) Ghana’s insurance market value in GH₵ m

GWP1 GWP (Life) GWP (Non-life) 5,000 23%
22%
4,000
21%
GH₵4.7b GH₵2.5b GH₵2.2b 3,000 20%
FY21 FY21 FY21 19%
1Gross Written Premiums
2,000
18%
1,000
17%
0 16%
2017 2018 2019 2020 2021

Total Gross Premiums Written Y-O-Y Growth

Life insurers Non-life insurers Penetration rate

Segmentation of the Ghanaian insurance industry
22 29 3% Dec 2021

Brokers Reinsurers Non-Life

47% Life

>80 3 53%

Page 19 Source: National Insurance Commission, Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022
Sector overview – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Life insurance 2021 Life insurance distribution by gross premium

Others 5%
• The top four companies in the life segment account for about 75% of all life
insurance premiums written in the market. Whole Life and Endowment 28%
• Below this, the market is fluid and quite fragmented, creating a large tail-end of
smaller players sustaining market shares of less than 8%. This indicates scope for Credit Life 4%
further consolidation ahead, perhaps spurred by new foreign entrants (or recent
foreign entrants) buying up smaller domestic players, or even one of the Term 6%
larger domestic concerns.
Group Life 7%

Universal Life and Investment

49%
Products

There are 22 life insurers in the

market.
2021 Life insurance gross premiums written in GH₵ m

Others 259

Old Mutual Assurance 104

Microinsurance is being
promoted to deepen insurance MiLife Insurance 134
penetration.
Metropolitan Insurance 117

GLICO Life 180

Prudential Insurance 223

Technological innovation is helping
to increase the penetration Starlife Assurance 412
rate via the use of direct digital
sales and services. SIC Life Insurance 476

Enterprise Life Insurance 609

Page 20 Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, NIC, Quarterly Market Report Q4 2021
Sector overview – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Non-life insurance distribution by gross premium written (2021)

Non-life insurance
15% Others 13%

• The non-life insurance segment is composed of fire, theft and property, Engineering 6%
motor, bonds, engineering, personal accident, medical and health and
other insurance segments.
• The motor vehicle segment is a particular source of innovation within the Bonds/Financial Guarantees 6%
non-life market, owing in large part to the relative size of this coverage
line, which currently accounts for nearly half of non-life premiums written
in the country. Motor 51%

Fire, Theft & Property 24%

3 reinsurance
companies

Top 10 non-life insurance companies by gross premiums written in

GH₵ m (2021)

Prime Insurance Company Limited 65

29 non-life Sunu Assurance 67

insurers Phoenix Insurance 86

Activa International 116
Ghana Union Assurance 141
Vanguard Assurance 163
Star Assurance 192
Hollard 212
SIC Insurance Company Limited
> 80 Brokers 276
Enterprise Insurance 335

Page 21 Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, NIC, Quarterly Market Report Q4 2021
Key developments - Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Promotion of microinsurance

01 • Technological innovation is advancing the education of ordinary Ghanaians and helping to increase the penetration rate through direct digital
sales and services, including mobile phone-based policies. Microinsurance is targeted at the majority of workers within the informal sector,
especially the rural dwellers are largely underserved by mainstream insurance companies.

Deepening insurance penetration

02 • In an effort to accelerate life insurance penetration in the country, Republic Bank has partnered with Enterprise Life in 2022 to launch a trio of
bancassurance products – Final Rest, NextGen and EduPlan policies.

Revision of minimum capital requirement

03 • As part of ongoing efforts to stabilise and strengthen the capacity of the financial services sector to support socio-economic development,
National Insurance Commission (NIC) revised the minimum capital requirements from GH₵15m to GH₵50m for insurance companies, GH₵40m to
GH₵125m for reinsurance companies and GH₵0.3m to GH₵0.5m for brokers in 2019.

New insurance bill

04
• In 2021, parliament passed the Insurance Act, 2021 (Act 1061) to replace the Insurance Act, 2006 (Act 724) and to provide for the regulation
and supervision of the insurance market. Act 1061 creates three main licence categories under which insurance businesses may operate:
Insurance Licence, Reinsurance Licence and the new Innovative Insurance Licence.

Promoting innovation

05 • NIC and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH’s FSD component partnered in 2022 to launch InnoLab, an
accelerator programme designed to support and grow the nation’s insurtech start-ups and aimed at unearthing market-ready solutions to make
insurance more relevant and affordable for Ghanaians.

Page 22 Source: African Private Equity and Venture Capital Association, Ndowuona and Company, Merger and Acquisition Directives Revised by Bank of Ghana (BoG)
Overview of key players – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Company name Year established Gross premiums Market share Key ownership
written (GH₵ m)

Enterprise Life Insurance 1924 609 24% Enterprise Group Limited

SIC Life Insurance 1962 476 19% Government of Ghana

Star Assurance
Starlife Assurance 2005 412 16%
Company Limited

Prudential Life Assurance 2014 223 9%

Prudential Life (UK)

Glico Life Insurance

1987 180 7% Glico Group Limited
Company Limited

**Information is as at December 2021

Page 23 Source: Company Websites, National Insurance Commission, S&P Capital IQ

Regulatory framework – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Insurance Act 2021, ACT 1061 Functions of National Insurance

► Replaced Insurance Act 2006, Act Commission
724.
► This Act complies with the
International Association of Insurance Issues directives, directions, instructions
Supervisors Core Principles and gives and guidelines to insurers, reinsurers and
better regulatory powers to the insurance intermediaries
National Insurance Commission.
Monitors the operations of the insurance
market

Supervises licensees on an individual basis

and where appropriate on a group basis

Enforces compliance, in the insurance

National Insurance Commission market of regulatory requirements on anti-
money laundering and countering the
► NIC operates under Insurance Act, financing of terrorism
2021 (Act 1061).
► The object of the Commission is to
ensure effective administration, Issues licences under Insurance Act 1061
supervision, regulation and control the
business of insurance in Ghana.
Enforces compliance by licensees with the
provisions of Insurance Act 1061

Page 24 Source: National Insurance Commission

Regulatory framework – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Key requirements for operational licenses of insurance

Non-refundable application fee Certificate of incorporation and

commencement of business

8 1
Copies of all contracts regulating the
applicant’s relationship with other
companies 7 Shareholding structure and
shareholders’ details

6
Description of the location of office
accommodation to be approved by
3 Detailed 5-year business plan
containing relevant projections
the National Insurance Commission

5 4
Audited statement of affairs showing Evidence of availability of minimum
all assets and liabilities required capital and its source

1Minimum required capital for insurance businesses was revised in 2019

Page 25 Source: National Insurance Commission

 Regulatory framework – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Revision of insurance business capitalization

Insurance broking Reinsurance broking

Insurance companies Reinsurance companies companies loss adjustors companies

Previous Minimum Capital

Requirement GH₵15.0m GH₵40.0m GH₵0.3m GH₵1.0m

New Minimum Capital GH₵50.0m GH₵125.0m GH₵0.5m GH₵1.0m

Requirement

1Minimum required capital for insurance businesses was revised in 2019

Page 26 Source: National Insurance Commission

SWOT analysis – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Strengths Weaknesses
• The insurance market is competitive across both the life • Distribution of insurance remains inadequate. Insurance
and non-life segments. companies need to leverage the media to market their
products.
• Recent recapitalization and revision of the regulatory
environment, specifically relating to the increase in • The relatively low level of education exhibited by sales
agents contributes to the weakness of the sector. Due to

S W
minimum capital requirements from GH₵15m to GH₵50m,
are expected to strengthen market. the practical intricacies of the insurance products, it is
highly necessary that the agents selling insurance
understand the contracts they are supposed to sell.

Opportunities
• Digital insurance presents an opportunity to provide easy
access to insurance products and services to consumers
O T Threats
• Educating the informally-educated section of the population
in the country remains an issue.
especially with the development of mobile phone-based
policies. • The market has faced negative perception due to fraudulent
claims and delay in payments. Recent regulatory reforms
• The life insurance industry is fast growing, signalling that are expected to improve this perception
the consumers are becoming more educated about
insurance products.
• The increased spate of cyberattacks by hackers on the
systems of corporate institutions creates a viable market
to provide insurance cover to corporate clients.

Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, NIC, Increasing Insurance Penetration in Ghana: The Challenges and Strategies

Page 27
 Capital and money markets

Page 28
Sector overview – Capital and money markets sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

The Ghana Stock Exchange Securities and Exchange Commissions Indices

was established in 1989 Is the Regulator
GSE provides an avenue for investment The GSE publishes the GSE Composite
The Securities and Exchange Commission was Index (GSE-CI) and the GSE
and creates access to capital. The GSE established under Securities Industry Act, 2016 (Act Financial Stocks Index (GSE-FSI).
lists several types of securities 929) (‘the Act’) with the object to regulate and
including shares (preference promote the growth and development of an efficient, The calculation of the GSE Composite
or equities), debt in the form of fair and transparent securities market in which Index (GSE-CI) is based on the volume
investors and the integrity of the market are weighted average closing price of all listed
corporate bonds (and notes), municipal protected. stocks.
bonds (and notes), Government bonds
(and notes) and close-end unit trusts
and mutual funds.

Ghana Fixed Income Market (GFIM) is a market to

36 Listed 400.6m in facilitate the secondary trading of all fixed income
Companies trade volumes securities and other securities to be determined
from time to time. The market has been
Ghana Fixed IncomebyMarket
established (GFIM) is in
key stakeholders a market to
the financial
facilitatemarket
the secondary
led by thetrading
Bank ofof all fixed
Ghana (BoG),income
Ghana
GH₵411m in 1Ata securitiesStock
and Exchange,
other securities to be determined
(GSE), Central Securities from
GH₵64.5b in time to time.
Depository Ghana Ltd (CSD), Ghana Association of
value of equities Glance
Market Cap Bankers, the Ministry of Finance, Financial Market
trading The GFIMAssociation
is based on theGhana)
(ACI existingandlicence
Licensed that the Ghana
Dealing
Stock Exchange
Members(GSE)(LDMs)has, to operate
of the a market
Ghana Stock for
Exchange.
securities.
TheThe
GFIMmain regulator
is based on thefor the market
existing licenceis thethe
that
SecuritiesGhana Stock Exchange
and Exchange (GSE) has to operate a
Commission.
market for securities. The main regulator for the
Companies listed on the GSE include the country’s leading market is the Securities and Exchange
domestic banks, mining organizations and food and drink Commission.
companies.

1Key facts as of Dec 2021

Page 29 Source: Fitch Solutions, Ghana Banking & Financial Services Report Q1 2022, Ghana Stock Exchange, Securities and Exchange Commission, 4th Quarter 2021 Newsletter
Sector overview – Capital and money markets sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Key requirements for listing Key companies by market capitalization in GH₵ m - Jan 2022

Agricultural Development Bank 1,756

Ghana Stock Exchange
• Stated Capital of at least GHc1million Ecobank Ghana 2,451
• Public float must not be less than 25% of the number
of issued shares of the company Standard Chartered Bank 2,736

• Payment of Shares must be in full Ecobank Transnational Incorporated 3,129

• Spread of Shares should be adequate with at least
100 shareholders after the public offer for the Main MTN Ghana Ltd 13,642
Board.
AngloGold Ashanti Ltd 15,407
17,070
Ghana Alternative Markets Tullow Oil
• Stated Capital of at least GHc0.25million
• Public Float must not be less than 25% of the
Constituents of the capital market
number of issued shares of the company
• Payment of Shares must be in full Broker-Dealers
execute orders on behalf of its clients and trade for their
• Spread of Shares should be adequate with at least
own accounts
20 shareholders after the public offer for the Main
Board.

Fund Managers
implement a fund's investment strategy and managing its
Ghana Commodities Exchange trading activities

• Net worth of GHC 50,000

• Company registration certificate Custodians
• GCX Basic membership training certificate hold financial assets for safekeeping to minimize the risk
of theft or loss
• Tax clearance certificate.

Mutual Funds
investment programmes funded by shareholders that
trade in diversified holdings and is professionally
managed

Page 30 Source: Securities and Exchange Commission, Ghana Stock Exchange, Market Research
Key developments - Capital and money markets sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Ghana Stock Exchange Strategic Plan

01 The Ghana Stock Exchange launched 3-year strategic plan in 2021 to transform the capital market sector from a frontier market to an emerging
market. The exchange plans to introduce new products such as derivatives, green bonds and others into the market, to provide more liquidity and
attractive investment options for existing and potential investors.

Capitalizing on technological infrastructure

02 The SEC’s regulatory response to the rising need to support the development and adoption of new technologies has been a balanced approach,
balancing the potential for innovation against risk to investors, market integrity, and financial system stability. In May 2021, the regulator launched
the first ever Capital Market Master Plan (CMMP) to create a market value chain that provides invaluable opportunities for technological innovation
to transform the market in a variety of ways.

Fixed Income Highlights

03 The elevated inflation pressures (+200bps) in Q4 2021 and currency risk undermined demand in the primary market and pushed up yields at
the shorter end of the yield curve. Despite the lower Q4 primary bills issuance target of GH¢13.87 billion, the quest for higher risk-adjusted returns
led to a target coverage ratio of 0.87x and an upward trend in yields on the 91- day and 364-day treasury bills.

Page 31 Source: Securities and Exchange Commission, Ghana Stock Exchange

Overview of key players – Capital and money markets sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Player Year Established Investment Banking Asset Brokerage Pensions

Management

InvestCorp 2013 √ √ √ √

Cal Asset 2006 √ √ √ √

Management

IC Securities Ltd 2005 √ √ √ √

Databank Financial 1990 √ √ √ √

Services Ltd

EDC Stockbrokers NA √
Limited

SBG Securities NA √
(Gh) Limited

SIC Brokerage 2006 √

Limited

Page 32 Source: Company Websites

Regulatory framework – Capital and money markets sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

The capital market is governed by the Securities and Exchange Commission

(SEC), which is established by the Securities Industry Act, 2016 (Act 929)
(‘the Act’) with the object to regulate and promote the growth and Key Legislation in Capital Markets
development of an efficient, fair and transparent securities market in which
investors and the integrity of the market are protected.

Functions of the Securities and Exchange Securities Industry Act, 2016, Act 929

Advise the Minister on matters relating to the securities

industry
Foreign Exchange Act 2006 (Act 723)

Maintain surveillance over activities in securities to ensure

orderly, fair, and equitable dealings in securities SEC Regulations 2003 (LI 1728)

SEC Compliance Manual for Broker-

Formulate principles for the guidance of the industry Dealers, Investment Advisers and
Representatives

Unit Trust and Mutual Fund Regulations

(LI 1695)
Monitor the solvency of licence holders and take measures to
protect the interest of customers where the solvency of a licence
holder is in doubt
Companies Act 1963 (Act 179) (as
amended)

Register, licence, authorize or regulate, in accordance with the

Act or the Regulations, the establishment of securities
exchanges, commodities and futures exchanges, securities
depositories

Page 33 Source: Securities and Exchange Commission

Regulatory framework - Capital and money markets sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

The Ghana Stock Exchange (GSE) operates within a set of rules, including membership, listing and trading, which it sets itself and
self-regulates. These are, collectively, referred to as the GSE Rule Book. Within this, there are several categories of rules.

Membership Rules
These deal with the criteria for membership of Investor Protection Provisions
the GSE, code of conduct or ethics for The GSE has various provisions in its rules that
members, among others.

04
have been designed to protect the investor in

02
addition to what the SEC provides.

Listing Rules
01 03 05
Surveillance Rules
• These prescribe, among others, criteria for
listing securities (local and external), continued • The Securities and Exchange Commission (SEC)
obligations of the listed companies as well as carries out regular inspections of Licensed
takeover and merger procedures. GSE Automated Trading Rules Dealing Members' operations and books. Brokers
are also required to submit returns to GSE.
• There are 21 licensed stock broking firms that
These exist to govern electronic trading done
have set up systems for serving non-residents. • The Trading and Surveillance Unit within the
by the brokers whether on the floor,
Exchange carries out on-site surveillance
from dealers’ offices or through the secured
activities for all trading members and reports to
internet.
the Risk Management Committee of Council.
Page 34 Source: Securities and Exchange Commission
SWOT analysis - Capital and money markets sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Strengths Weaknesses
• Ongoing improvements to the regulatory environment • The Ghana Stock Exchange (GSE) is poorly diversified in
have strengthened the capital markets sector, as SEC comparison to developed stock markets.
revised the minimum capital requirements upwards for the • Lack of a culture of saving and investing for the future.
various market operators in 2020.
• Due to small number of listed companies, it is relatively
easy to monitor and ensure compliance.

S W
Opportunities
• The SEC maintains efforts to foster collaboration between
the regulator and fintech providers in order to create
O T Threats
• Lack of a culture of saving and investing for the future
• Gap in education on the importance of and interest in the
digital platforms for retail trading and explore
opportunities and solutions to regulatory obstacles to management of pension contributions
technological development in the market. • There is tough competition from global players such as
• The GSE plans to introduce new products such as the Nigerian Stock Market which has a total of 161 listed
derivatives, green bonds and others into the market, to companies
provide more liquidity and attractive investment options
for existing and potential investors.

Source: Securities and Exchange Commission

Page 35
 Pensions

Page 36
Sector overview – Pensions sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Assets Under Management in GH₵ b at Dec 2021

Pension schemes are designed to provide retirement benefits to retired workers or
contributors, beneficiaries of a deceased contributor or members who have become invalid.
Workers are required by law to contribute to the mandatory pension schemes managed by 7.3 Pensions
trustees to pay these benefits.
The National Pensions Regulatory Authority (NPRA) was established by the National Pensions Collective Investment
Act 2008, (Act 766) to regulate and monitor the operations of the three-tier pension scheme 7.4
Schemes
and ensure effective administration of all pensions in the country.
29.7 Other Funds
The objective of the Authority is to regulate and monitor the operation of the 3-Tier Pension
Scheme and ensure the effective administration of pensions in the country.

A voluntary, fully-funded and

Contributions Exemptions privately managed provident
fund and personal pension
plan. A mandatory, fully-
funded and
privately managed
Of workers’ basic occupational
18.5% salary as total
contribution
Contributions
pension scheme

up to 35%
Investment
Of total contribution income The Basic National Social
13.5% is managed by
SSNIT Retirement Security Scheme (BNSSS)
is the first of a 3-tier
benefit pensions Scheme
established by the National
Pensions Act (Act 766) as
Of total contribution amended by Act 883
is managed by

5%
trustees

Source: Social Security and National Insurance Trust (SSNIT), National Pensions Regulatory Authority, Pension Digest Vol 2, Issue 2

Page 37
Sector overview – Pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Pensions Industry Value Chain National Pensions Regulatory Authority – Regulator:

Monitoring of service providers to ensure effective scheme governance, including internal controls, proper record keeping
and the safety of pension scheme assets.

1 Contributions Pension Fund Trustees e.g.

SSNIT, private trustees
Pension Fund custodians,
e.g. banks, other NBFIs
Pension Fund managers,
e.g. investment houses

5 Investments Monitoring and Activities include: Activities include: Activities include:

of funds regulation Employers’ • SSNIT registers • Responsible for the • Trade allocation
13.0% employers and warehousing of the
• Security and manager
contribution of workers. pension fund assets
selection
employees’ • Process and pay • Keep funds in trust for
basic salaries benefits to eligible contributors • Trade execution and
Industry members and
nominated dependants
• Execute transactions processing
and undertake activities • Valuation and
Value Mandatory Employees 5.5% • Collects contributions relating to the reporting
& contribution of • Manages records of administration of
Safe Chain voluntary 2 their basic members. pension fund • Risk management &
keeping of income investments upon compliance
contributions • Ensure that the proper
instructions by the
funds asset • Monitoring and review
Pension Fund Trustee
allocation/investment
4 Voluntary
decisions are made
contribution – • Ensure that pay outs
Management of up to 16.5% of are promptly
funds and claims an individual’s distributed among all
payment basic salary qualified plan
participants.

3 • The biggest player in the pensions industry remains the Social Security and National Insurance Trust (SSNIT).
• The organization is a statutory public Trust charged under the National Pensions Act, 2008 Act 766 with the
administration of Ghana’s Basic National Social Security Scheme. Its mandate is to cater for the first tier of the
three-tier pension scheme.

Source: Social Security and National Insurance Trust (SSNIT), National Pensions Regulatory Authority
• The Trust is currently the largest non-bank financial institution in Ghana.
Page 38
Sector overview – Pensions sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Summary Statistics for SSNIT1 Summary Statistics for Private Pension Funds

GH₵ 11.3b GH₵ 4.2b GH₵ 22b GH₵ 3.2b

Total Assets under bSSS2 Contributions Received Total Assets Contributions Received

GH₵ 3.3b 62,472 GH₵ 1.3b GH₵ 2.1m

Benefits Paid Active Employers Benefits Paid Contributors

GH₵ 1.6m GH₵ 300 226 29

Active Contributors Minimum Pension Private Pensions Informal Sector
Schemes Schemes
1Social Security and National Insurance Trust
2Basic National Social Security Scheme

Page 39 Source: National Pensions Regulatory Authority, 2020 Annual Report

Sector overview – Pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

New Investment Guidelines for Pension Trustees

Asset Allocation
Additional Mandatory for Tier 2

?
Fund Type Description Age Limit Variable Income Fixed Income Restrictions Funds

Moderately
Fund 1 15-44 15% - 40% 60% - 85% -
Aggressive
Optional for Tier 3 Funds
Moderately
Fund 2 45-54 5% - 20% 80% - 95% 40% GOG Min.
Conservative
60% GOG Min.
Fund 2 Conservative 55-60 0% 100%

Fund 4 Aggressive By formal request 20% - 60% 40% - 80$ -

Implications of New Guidelines

Ensure that employee records are accurate in
order to allocate accordingly
Employer

Take active interest in updates in pensions

Employee industry and invest as much as possible

Page 40 Source: Petra Trust

Key developments - Pensions sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Private Equity and Pensions

01 In early 2022, Injaro Investment Advisors Limited – a Ghanaian growth capital investor launched Injaro Ghana Venture Capital Fund, a GH¢150m
fund with commitments from several private pension schemes. This is inline with recent NPRA guidelines requiring pension schemes to diversify
their portfolios to incorporate private equity. This presents local private equity fund managers the opportunity to tap into some of capital managed
by private pension schemes.

Five-Year Strategic Plan

02 NPRA has completed the development of a five-year (2022 to 2026) strategic plan to increase pensions coverage to 40%. Completed late 2021 the
plan builds on the current one (2017 – 2021) and is expected to reduce old-age poverty and increase the overall contribution of the sector to the
national economy. Under the plan, NPRA expects to grow the pensions assets under management to an estimated value of GH¢50billion from the
current GH¢33billion.

Pension-Backed Mortgage

03 Ecobank Ghana And Enterprise Trustees sign a partnership deal in July 2021 to deliver pension-backed mortgages. This Tier 3 pension scheme,
allows workers to use their accrued benefits in the private schemes as collateral security to acquire their primary home.

Page 41 Source: National Pensions Regulatory Authority

Overview of key players – Pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Petra Trust Axis Pensions Metropolitan GLICO Pensions

Company Ltd Trust Ltd Pension Trust Trustee Ltd

Year Established 2010 2010 2010 2010

Petra Trust Company Axis Pensions Trust Ltd Metropolitan Pensions Trust GLICO Pensions was
Limited provides trustee offers retirement savings (MPT) is a wholly owned incorporated in 2010 and
Key Facts services for employers products and fund subsidiary of Metropolitan licensed by the NPRA as a
and individuals in Ghana. administration expertise. Life Insurance Ghana. corporate trustee under the
National Pensions Act.

Source: S&P CapitalIQ, Company Websites, LeapFrog Investments – Petra Trust

Page 42
 Regulatory framework – Pensions sector Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Key stakeholders in the pensions sector

The National Pensions Regulatory Authority (NPRA) was established by the National
Pensions Act 2008, (Act 766) to regulate and monitor the operations of the three-tier
pension scheme and ensure effective administration of all pensions in the country
• Institutions represented are the Bank
of Ghana, Securities and Exchange
Commission, Ministry of Finance and
Functions of the National Pensions Regulatory Authority the Ministry of Justice and Attorney-
General’s Department.
Register occupational pension schemes, provident funds and
personal pension schemes

Issue guidelines for the investment of pension funds

• Associations represented are the

Approve, regulate and monitor trustees, pension fund
managers, custodians and other institutions that deal
Trades Union Congress (Organized
with pensions as the Authority may determine Labour), Ghana Employers Association
and the National Pensioners
Association.
Establish standards, rules and guidelines for the
management of pension funds under this Act

Regulate the affairs and activities of approved trustees and

ensure that the trustees administer the registered schemes

Page 43 Source: National Pensions Regulatory Authority

SWOT analysis – Pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Strengths Weaknesses
• The adoption of the Ghana Card as the unique identifier is • Lack of a culture of saving and investing for the future
expected to improve the ease of doing business, as it will
create the convenience of using only one card for all • Information on the pension industry has room to be more
transactions. comprehensive, especially with regards to the fund
managers and key statistics
• Ongoing improvements to the regulatory environment has

S W
strengthen capital markets industry.

Opportunities
• Current technological infrastructure is robust enough to
support digitization of pensions access by several
O T Threats
• Lack of a culture of saving and investing for the future
• Gap in education on the importance of and interest in the
providers with opportunities to develop these technologies management of pension contributions
even further to capitalize on ease of use and efficiency.

Source: National Pensions Regulatory Authority, Pension Digest Vol 2, Issue 2

Page 44
 Recent industry investors

Page 45
Recent industry investors
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Investor Name Investee Year of Investment Sub-Sector

Leapfrog Investments Fidelity Bank Ghana Bank and Non-Bank

2021
Limited Financial Sector

BlueOrchard Finance Vanguard Assurance

2022 Insurance Sector
S.A. Company Limited

African Capital Alliance Petra Trust Limited

Ltd 2020 Pensions Sector

AfricInvest Fidelity Bank Ghana Bank and Non-Bank

Limited 2020 Financial Sector

AFIG Funds First Atlantic Bank Bank and Non-Bank

Ghana Limited 2017
Financial Sector

LeapFrog Investments Enterprise Trustees 2017 Pensions Sector

Limited

Source: Market Research, S&P Capital IQ

Page 46
 03
Sector opportunities

Page 47
Sector opportunities – Banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Partnering with Insurance Companies One District One Factory Initiative

• Bancassurance continues to be an • The initiative allows partner financial
opportunity as insurance companies institution to support budding companies
partner with banks to have a wider reach with subsidized loans. It gives the
of their target market. opportunity to boost the loan book balance
and interest income.

Fintech Development Capturing the Unbanked Population

• Several financial institutions currently • To capture the unbanked population that
exist without online banking remains in Ghana, there are opportunities
infrastructure; opportunities remain in to set up banking institutions such as
fintech to develop technological savings and loans companies that target the
infrastructure that supports online population that cannot reach the traditional
banking with the aim of providing ease banking system.
of use and convenience to the banking
customer.

Page 48 Source: Ministry of Finance, The Budget Statement and Economic Policy of the Government of Ghana for the 2022 Financial Year
Sector opportunities – Insurance sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Bancassurance Opportunities in InsurTech

• Increasing percentage of banked • Introduction of InsurTech solutions such as
population provides unique and viable buying policies and filing claims on mobile
avenue to distribute insurance products. devices increases the reach of insurers
• An increasing number of insurance even without physical branches.
companies are partnering up with banks • Marketing of microinsurance on these
to provide insurance products to platforms also ropes in the low-income
customers. populace.

Meeting Consumers’ Needs

Property Insurance
• Insurers should leverage new and existing
types of consumer data to gain a better • Urbanization and the increase in the size of
understanding of potential customers, the middle class has increased the demand
their needs and nuances of insurance for residential properties.
behaviour and usage. • Gradual reduction in lending rates will spur
• Better understanding of customers’ needs the demand for mortgage facilities offered
and behaviour and leveraging technology by financial institutions. Increased demand
to develop innovative product solutions will come with opportunities to insure these
will help to build the perception of properties.
insurance among Ghanaians as products
provide greater value to households and
businesses.

Page 49 Source: Ministry of Finance, The Budget Statement and Economic Policy of the Government of Ghana for the 2022 Financial Year, Cenfri, The role of insurance in inclusive growth: Ghana in Brief
Sector opportunities - Capital and money markets sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Introduction of New Securities Capturing the Unbanked Population

• The Ghana Stock Exchange (GSE) plans • There are opportunities to set up
to develop new products, such as Green institutions and mutual funds to take
Market products and derivatives, to advantage of global securities. It presents
increase the investing opportunities of an opportunity to capture the unbanked
pension funds. This will enable them to population by widespread education of the
diversify their growing asset base to importance of investing.
better balance their risk and returns.

Opportunities to Develop Fintech

Key Partnerships • The GSE stated that it will continue to
• The GSE has expressed its willingness to introduce fintech-related products and invest
sustain partnerships with relevant in technology to improve participation in its
organizations such as the Association of markets.
Ghana Industries (AGI) and various • Opportunities remain to invest and develop
industry chambers of commerce and fintech that improve cybersecurity in the
associations to increase listings and drive capital markets.
liquidity on its markets.

Page 50 Source: Ministry of Finance, The Budget Statement and Economic Policy of the Government of Ghana for the 2022 Financial Year
Sector opportunities – Pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Voluntary Pension Schemes Private Equity

• Ghana’s current literacy rate is
• NPRA has recently allowed private equity
reported to be 69.8%, making it
fund managers the opportunity to tap into
one of the highest in the West
some of the GH₵ 22b of capital managed by
African sub-region.
private pension schemes, thus creating the
• This presents opportunities to opportunity for foreigners to invest in such
encourage the population to enrol funds.
in voluntary pensions schemes in a
bid to building a savings culture.

Key Partnerships
Broader Coverage • The GSE has stated that it will increase its
• NPRA expects to explore the engagements with the National Pension
introduction of special legislation for Regulatory Authority (NPRA) and its
the informal sector that will promote members to boost the pension industry’s
coverage through leveraging on the
mobile money platform and provide investments in the real sectors of the
some incentives to members who opt economy.
to use that means to plan for their • As the GSE plans to develop products such as
retirement.
green bonds, it presents the opportunity of
areas to invest for pension funds.

Page 51 Source: BFT Online, Injaro launches Injaro Ghana Venture Capital Fund with a first close set for Q2 2022, Ministry of Finance, The Budget Statement and Economic Policy of the Government of Ghana for the 2022 Financial Year, The World Bank
 04
Key investment considerations

Page 52
Key investment considerations Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Positively Trending Demographics Entry into Private Equity

Growing Financial Inclusion Pensions Funds
Ghana's youthful population presents an National Pensions Regulatory
opportunity for significant economic Efforts are being made in all sectors in the Authority has allowed pension funds
transformation and growth. The financial industry to capture the unbanked to invest in private equity in recent
population of 30.8 million, expected to population especially, as is evidenced by years. The decision was intended to
grow at a CAGR of 2% in the next 10 the astronomical growth in mobile money increase the diversification of
years, is a key driver for the booming transactions over the last few years which Ghanaian pension fund assets as
financial sector. well as providing a much-needed
grew from GH₵ 32.8 b in December 2019
capital boost for the economy.
to GH₵ 82.9 b in December 2021.

Rapid Technological Innovation Imminent Introduction of Green

Securities
Sub-sectors across the financial
In line with the SEC’s strategic plan,
sector are developing the Ghana Stock Exchange will
technological infrastructure such introduce securities with a focus on
as online banking applications that sustainability and green practices.
allow customers conduct financial Investors will have more options of
services via online platforms in investment securities thus, as the
a seamless manner without world is catching on the wave on
green business practices.
stepping foot in the banking hall.

Page 53 Source: World Bank, Financial Inclusion, Securities and Exchange Commission, 4th Quarter 2021 Newsletter, Bank of Ghana, Standard Chartered Digital Banking, Innovation and Fintech Festival, National Pensions Regulatory Authority
 05
Testimonials

Page 54
Testimonials

“I recommend Ghana as an investment destination in Africa.

Having been in the market for over 14 years, by our own
experience, we believe Ghanaians are very hospitable.

Ghana is politically stable and has several opportunities in

various sectors including oil and gas, mining and agribusiness,
particularly cocoa processing.”

Zenith Bank

Page 55 Source:
 06
Contact us

Page 56
Key contacts

Yofi Grant Edward B. Ashong-

Chief Executive Officer Lartey
Tel: +233 302 665 125-9 Director, Investor Services
Email: Tel: +233 302 665 125-9
[email protected] Email
edward.ashong-
[email protected]

Yaw Amoateng Eugenia Okyere

Afriyie Head of Research
Deputy Chief Executive Tel: +233 302 665 125-9
Officer Email:
Tel: +233 302 665 125-9
[email protected]
Email:
[email protected]

Page 57
 07
Appendix

Page 58
 Appendix I: Structure of the Ghana banking sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Trade Association Regulator

Ghana Association of Bankers Bank of Ghana

Banks

Sources of Capital Support Services Financial Services Financial Products Uses of Capital

Retail
Fintech and Remittances and Loans and
Investors Payments Savings Account
Online Banking Advances
Fixed Deposit

Current Account
Foreign Currency Personal Loan
Borrowed Capital Staff Investments
Exchange
Commercial

Wealth Term Loan

Depositors Automated Teller
Machines Management Revolving Credit

Risk Management
Capital Raising

Page 59 Source: Market Analysis

Appendix II: Structure of the Ghana capital market sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Regulator
Securities and Exchange
Commission

Sources Products Channels Intermediary Users

Investors Publicly Listed

Ghana Stock Individuals
(Individual and Companies
Exchange
Corporations) (Shares)

Government of Fixed Income Ghana Alternative Corporations

Ghana Securities Market

Ghana
Corporations Commodities Broker-Dealers
Exchange

Fund Managers

Mutual Funds

Page 60 Source: Market Analysis

Appendix III: Structure of the Ghana pensions sector
Capital and Money
Banking Sector Insurance Sector Pensions Sector
Markets Sector

Regulator
National Pensions Regulatory
Authority

Employer Employee

13.5% 5% 16.5%

First Tier Mandatory Basic Second Tier Mandatory

Third Tier Voluntary Pension
National Social Security Occupational Pension
Schemes
Scheme Schemes

SSNIT Approved Trustees Provident Fund Schemes

Personal/Pension

Pension Fund Manager Pension Fund Custodian

Page 61
Source: Pension Reform In Ghana: The New 3-tier Pension System-rationale, Implementation Challenges And The Way Forward
Appendix IV: List of abbreviations

AfCFTA African Continental Free Trade Area

AGI Association of Ghana Industries
BoG Bank of Ghana
CAGR Compound Annual Growth Rate
CMMP Capital Market Master Plan
DBG Development Bank of Ghana
FSD Financial Support Direction
GDP Gross Domestic Product
GSE Ghana Stock Exchange
MPR Monetary Policy Rate
NIC National Insurance Commission
NPRA National Pensions Regulatory Authority
SEC Securities & Exchange Commission
SSNIT Social Security and National Insurance Trust

Page 62