Skip to content
Subscriber Only

Ghana’s Stock Revival on Hold With Investors Wary of Elections

  • Accra stocks are world’s third-worst as trading dwindles
  • Spending ahead of 2020 polls may pose risk to inflation
A man holds a collection of Ghana cedi banknotes in Accra, Ghana, on Tuesday, Sept. 20, 2016. Ghana's central bank expects mergers and acquisitions among lenders to increase as regulators prepare new rules that will boost the amount of cash that they need to set aside.
Photographer: Ty Wright/Bloomberg
Updated on

First, a deep cleanup of its banking sector battered Ghana stocks. Now, investors already appear to have a wary eye on elections due next year, curbing the prospects of any revival.

The Ghana Stock Exchange Composite Index, the world’s third-worst performing equities benchmark in 2019 in dollar terms, has suffered as a government-led reorganization of banks that ended this year reduced the flow of funding to companies and drained market sentiment. Even though share prices have tumbled, investors may still be reluctant to return, said Joel Hammond, an analyst at Strategic African Securities Ltd.