GSE working to reduce impact of high interest rates on investments–Ekow Afedzie

Managers of the Ghana Stock Exchange (GSE) are hopeful trading activities on the bourse will become profitable if government is able to bring down interest rates on loans.

Currently, the average cost of borrowing in the country is around 27 percent, making Ghana one of the countries with the highest interest rate in West Africa.This is said to also negatively impact on share prices on the Stock Exchange.

The Managing Director of the Ghana Stock Exchange, Ekow Afedzie said new measures will be implemented by next month to cushion investors and encourage trading activities.

“When you have interest rates been high. Share prices go down. It is actually reflecting what is happening. Once interest rates for short term instrument are high you are going to find that going down,” he explained.

Mr. Afedzie stated that the exchange is aware of the negative impact of the situation on investors’ funds, hence measures have been put in place to solve the situation.

“As an exchange we are also concerned and we will do something about it. We going to put in a lot of measures beginning next year to stem the rapid decline of prices using small volumes”, Mr. Afedzie stressed.