Investor confidence in Ghana’s capital market is coming under renewed scrutiny following the implementation of the capital gains tax on securities, a policy that some stakeholders say risks reducing the market’s appeal to both local and foreign investors.

While the Ghana Stock Exchange (GSE) remains one of the best-performing markets globally this year, its Managing Director, Abena Amoah, says concerns among potential issuers persist — particularly around the cost of doing business and the broader macroeconomic environment.

Speaking during a panel discussion at the 14th Ghana Economic Forum organised by the Business and Financial Times in Accra, Abena Amoah said several companies are holding back on new listings or capital-raising efforts due to structural bottlenecks that make the investment climate less competitive.

“We need sustained macroeconomic environment. That is what the potential issuers tell us, that their ability interest rates are still too high. Bank loans in 20% and above is not competitive. Power costs are still too high. Productivity of the Ghanaian, we still need to get more competitive there,” she noted.

She pointed out that the high cost of capital and energy challenges continue to weigh on business confidence, even as market activity shows signs of recovery.

The GSE Managing Director added that discussions around taxation remain key to sustaining investor momentum.

“And of course, there’s still a lot of discussion around the tax framework that enables and encourages more investment,” she explained.

She further that the Exchange is working closely with policymakers to ensure the market remains attractive to long-term investors.

“So for us, even on the GSE, we are struggling with Ghana now implementing capital gains tax on investors who invest in securities, making us one very few markets in Africa with this policy and making our markets less competitive compared to these other markets. And this is one of the areas we want to continue to engage with policymakers, to ensure that investors come and finance the economic development — be it in infrastructure, be it in corporate, be it in government finance for economic transformation,” she said.