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Business News of Friday, 19 September 2003

Source: GNA

Ghanaian companies raise C300 bn through GSE

Cape Coast, Sept. 19, GNA - The General Manager of the Ghana Stock Exchange (GSE), Mr Echo Afadzi, on Thursday said companies have raised 300 billion cedis through the GSE.

Mr Afadzi said this at a forum organised by the GSE and African Project Development Facility (APDF) in collaboration with the National Board for Small-Scale Industries for enterprises and some financial institutions in the Central Region, at Cape Coast.

The aim of the forum was to create awareness on capital acquisition among the participants.

Speaking on the topic "procedures and practical steps for raising long term capital" Mr Afadzi said most businesses are collapsing because their owners "went in for short-term loans to establish long-term businesses."

Repayment of such loans became due before the companies start full operation and appealed to the participants to form co-operatives to pool their resources to raise enough capital for their ventures.

Mr Afadzi said the growth of the country's economy depends on the viability of the small-scale industries since Ghana does not have enough big companies hence the need to educate them on how to raise capital for the promotion of their businesses.
He suggested that they should float shares as is being done in the developed countries to enable them to expand their businesses. Mr Spencer Taylor, Head of Investment Promotion and Development of the Central Regional Development Commission, described the forum as timely, in view of the fact that most of the entrepreneurs lack capital for expansion.