stockexchangreutersThe Ghana Stock Exchange (GSE) has created an alternative market for start up businesses and small to medium scale entrepreneurs to raise capital.

The new market, known as the Ghana Alternative Market (GAX), will be operational in March 2013.

The GSE says companies and small to medium scale businesses that were productive and unable to meet the rigorous requirements for listing on the main board, would also benefit from the market.

Ekow Afedzie, the deputy managing director of the GSE y said a revolving fund would be set up to support capital raising initiative for companies who would be listed on the GAX.

Institutions such as the Fidelity Capital Partners Limited, Ghana Venture Capital Trust Fund and the African Development Bank have expressed an interest to partner to be partners in the initiative.

They are expected to avail $1 million dollars to support the companies on GAX.

 As part of the benefits, listed companies will enjoy initial public offer financing and underwriting. Afedzie said the GSE would push for a listing on the Accra bourse next year to increase its market share.

The Accra exchange has 34 listed companies and Afedzie said they were targetting more than 50. He said Ghana’s bond market would be developed in a manner that would improve the secondary market.

Meanwhile, Ghana’s Security and Exchange Commission has also rolled out a five-year strategic plan that will see it embarking on a restructuring exercise. This has seen the commission install an automated surveillance system and web portals to improve real-time surveillance of the market.

The commission’s director General Adu Anane Antwi said Ghana was working towards the integration of West Africa’s capital markets.