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Ghana Fixed Income Market (GFIM) Share


Bonds are issued by governments, companies and other bodies seeking to raise capital or funds from the public. Bond Purchase literally means lending money to the bond issuer. This implies that, the reward for lending money is to receive a steady stream of payments (also known as interest payments or coupons) at periodic intervals throughout the tenure or the lifetime of the bond. This amount received (interest payments or coupons) is expressed as a percentage of the face value (the original money lent). At the end of the bond’s tenure or lifetime, the lender then receives a 100 percent of the bond’s face value.

On the other hand, there are some bonds that do not offer coupon or interest payments (zero-coupon bonds), these are priced at a discounted rate from their face value. When the bond reaches maturity or ends its lifetime, the face value (original amount) of the bond, along with the accumulated interest will be received. The yield of a bond is dependent on the credit quality (default rate) of the bond issuer. The top quality bonds are usually issued by the government, followed by bonds from government-linked companies, banks and corporations.

Why invest in Bonds?

  • 1. Capital Appreciation
  • 2. Stable Interest Income
  • 3. Currency Exchange Gain


Brief Introduction

The secondary market for fixed income securities had been dominated by over-the-counter (OTC) activities by dealers of banks such as Barclays, Stanbic, Standard Chartered and Societe Generale. These had operated without any structured rules and regulations. The types of securities on the OTC market had been mainly the Government of Ghana instruments and a few corporate bonds. Earlier attempts made by Ghana Stock Exchange to establish a well-structured secondary market for fixed income securities had failed.

The Central Government had also supported the effort to establish the market by listing its issues of notes and bonds on the Ghana Stock Exchange. Notwithstanding such efforts, these securities had been traded OTC. Again, in the 2015 National Budget Statement, the Government of Ghana indicated some policy measures to facilitate the growth and deepening the bonds market in Ghana. At this backdrop, key stakeholders in the financial market led by Bank of Ghana and the Ghana Stock Exchange came together to take up measures and steps to set up a well-functioning secondary debt market called GFIM, to support the Ghana economy.

The Stakeholder institutions that came together to establish GFIM include;

  • 1. Association of Banks in Ghana
  • 2. Bank of Ghana
  • 3. Ghana Stock Exchange
  • 4. ACI Ghana
  • 5. Central Securities Depository
  • 6. Licensed Dealing Members of the Ghana Stock Exchange and Ministry of Finance


Objectives of GFIM

GFIM has been established with the objectives such as:

  • 1. Improve liquidity in the trading of fixed income securities
  • 2. Bring about greater efficiency of the market
  • 3. Greater transparency with the trading and reportage of fixed income securities
  • 4. Better price discovery


Establishing GFIM

Prior to the establishment of the market, a technical committee made up of market operators and regulators was set up and tasked with the following:

  • 1. Establish the market
  • 2. Develop the rules for the market
  • 3. Advise and select technology infrastructure for the market
  • 4. Organize training and education of the market operators and the general investing public

In doing their work, the technical team consulted and had discussions with a number of stakeholders to seek their views and have their endorsement. These include

  • 1. Director-General of Securities and Exchange Commission
  • 2. Council of Ghana Stock Exchange
  • 3. Governor and Deputy Governors of Bank of Ghana
  • 4. Ag Director Debt Management Divison, of Ministry of Finance
  • 4. Managing Directors of some of the Banks and
  • 4. Treasurers and dealers of the Banks

The Technical Committee included:

1. Kofi Pianim - Dealer, SBG, President of ACI, Ghana
2. Emmanuel Nambware - Dealer, SCB
3. Bliss Hini - Dealer, EBG
4. Nikoi Kotey - Dealer, CAL
5. Kojo Darpaah - Dealer, BBG
6. Winston Nelson Jnr - CEO, African Alliance Securities Ltd
7. David Tetteh - CEO, CAL Brokers
8. Patrick Assan - Treasury, BoG
9. Stephen Tetteh - CEO, CSD
10. Kofi S. Yamoah - MD, GSE
11. Ekow Afedzie - DMD, GSE
12. Elizabeth Mate Kole - GM, GSE
13. Frank Berle - FC and H/CSS, GSE
14. Augustine Simons - Head of IT, GSE.


Stakeholders and Ownership

GFIM currently operates as a division or department of the Ghana Stock Exchange. In due course a separate company will be set up to be owned by the stakeholders. The initial stakeholders of the GFIM below may take shares in the incorporated company:

  • 1. Bank of Ghana
  • 2. Ghana Stock Exchange
  • 3. The Central Securities Depository Ghana Ltd
  • 4. Financial Markets Association (ACI) Ghana
  • 5. The Ghana Association of Bankers
  • 6. Licensed Dealing Members of the Ghana Stock Exchange


Governance and Regulation

The operations of the GFIM prior to being incorporated as a separate legal entity, is being overseen by a Governing Committee comprising of;

  • 1. Deputy Governor (01) of the Bank of Ghana - Mr. Millison Narh (Chairperson)
  • 2. The Treasurer of the Bank of Ghana; - Mr. Yao Abalo
  • 3. Two representatives of the Bankers Association of Ghana
    • a) Mr. Simon Dornoo, Managing Director, GCB
    • b) Mr. Kweku Bedu-Addo, Managing Director, SCB
  • 4. The MD of the Ghana Stock Exchange - Mr. K. S. Yamoah
  • 5. The CEO of the Central Securities Depository Ltd - Mr. Stephen Tetteh
  • 6. A representative of ACI Ghana - Mr. Kofi Pianim, Stanbic Bank Ghana Ltd
  • Two representatives of Ghana Securities Industry Association (one of which comes from the LDM community)
    • a) Mr. Winston Nelson Jnr, CEO, African Alliance Securities Ltd
    • b) Mr. Ekow Afedzie, DMD, Ghana Stock Exchange
  • 7. Debt Management Division, Ministry of Finance; Mr. Samuel Arkhurst, Ag. Director
  • 8. The Head of GFIM, Mr. Augustine Simons, Ghana Stock Exchange

In addition to this governance structure in place, the GFIM comes under the regulation of the Securities and Exchange Commission. However, Bank of Ghana could be consulted on issues pertaining to the primary dealers on the market.


Types of securities on the GFIM

The types of securities listed and traded on the GFIM include

  • 1. Government of Ghana treasury bills, notes and bonds;
  • 2. Bank of Ghana money market instruments
  • 3. Quasi-Government of Ghana institutions’ money market instruments, notes and bonds
  • 4. Corporate notes and bonds
  • 5. Local Government bonds
  • 6. Supra-national bonds
  • 7. Repos; and
  • 8. Other fixed income or money market securities

Some of the securities could be tagged as benchmarked securities if they meet the criteria for benchmarking. For a security to be tagged as a benchmarked security

  • 1. It should be at least of GH¢ 500m in size
  • 2. Have at least 30 holders; and
  • 3. Should at least have 2 years term


Dealing Members on the GFIM

Trading on the GFIM is limited to only authorized dealing members. These include:

  • 1. Institutions licensed by the Securities and Exchange Commission of Ghana to deal in securities and authorized by the Bank of Ghana as primary dealers; or
  • 2. Non-PD banks licensed by the Securities and Exchange Commission of Ghana to deal in securities; or
  • 3. Licensed Dealing Member (LDM) of the Ghana Stock Exchange.

Any other entity must trade through one of the above mentioned GFIM dealing members. However, the Bank of Ghana, for monetary policy purposes, is permitted to deal in Government of Ghana or Bank of Ghana securities listed on the GFIM.

At the time of the GFIM going live with the technology platform (the Bloomberg E-Bond system), on August 17, 2015, there were thirty three registered authorized dealing members of GFIM. The registered members categorized into their types include:

  • 1. Licensed Dealing Members
  • 2. Primary Dealer Banks
  • 3. Non-Primary Dealer Banks


Licensed Dealing Members

  • 1. African Alliance Securities Limited
  • 2. Bullion Securities Limited
  • 3. Cal Brokers Limited
  • 4. CDH Securities Limited
  • 5. Databank Brokerage Limited
  • 6. HFC Brokerage Services Limited
  • 7. IC Securities Limited
  • 8. Liberty Securities Limited
  • 9. Prudential Stockbrokers Limited
  • 10. Strategic African Securities Limited
  • 11. SIC Financial Services Limited
  • 12. Gold Coast Brokerage Limited
  • 13. EDC Stockbrokers Limited


Primary Dealer Banks

  • 1. Cal Bank Ghana Limited
  • 2. Barclays Bank Ghana Limited
  • 3. GCB Bank Limited
  • 4. Societe Generale Ghana Limited
  • 5. Standard Chartered Bank Limited
  • 6. Universal Merchant Bank
  • 7. Ecobank Ghana Limited
  • 8. Access Bank Ghana Limited
  • 9. Stanbic Bank Limited
  • 10. Unibank Ghana Limited
  • 11. Fidelity Bank Ghana Limited
  • 12. First Atlantic Bank Limited
  • 14. National Investment Bank
  • 15. ARB Apex Bank


Non-Primary Dealer Banks

  • 1. UBA Ghana Limited
  • 2. Capital Bank Limited
  • 3. GN Bank Limited
  • 4. HFC Bank Ghana Limited
  • 5. Prudential Bank Limited
  • 6. Sahel-Sahara Limited
  • 7. Sovereign Bank
  • 8. Agricultural Development Bank



GFIM as a market has a well-established information technology infrastructure (in the form of Bloomberg E-Bond together with the Central Securities Depository Ghana Limited Clearing and Settlement and depository system and in Ghana Inter-bank Settlement (GIS) of Bank of Ghana) to support its operations, in addition to bespoke market rules and alert market surveillance.

It may be possible in future to trade fixed income securities on the bond platform of the GSE Capizar Automated Trading System (ATS). The market opens at 9.00 hours GMT to 1600 hours GMT every business day or as may be determined by the GFIM in a press release.



Trading of the securities on the market is through over-the-counter arrangement but through a standardised platform on the E-Bond system. Trading could be executed through:

  • 1. Request for quotes method; or by
  • 2. An anonymous or firm order placed in the system; or by
  • 3. Voice trading

Request for quotes are made on benchmarked securities in standard amount of GH¢500,000 or multiples of the standard amount. Firm orders on the other hand may be in any amount other than the standard amount but in multiples of GH¢ 10.00. In trading, primary dealers shall have to provide a two-way quotes for all agreed benchmarked securities while all other dealers may have to provide indicative quotes for the benchmarked securities.

The securities are traded on the maximum spreads of 50 basis points. GFIM may vary the maximum spreads on the listed securities from time to time.



Since going live on August 17, 2015 activities on the secondary market have been very encouraging. The tables and graphs show the results of the activities on the market.

Statistics from August to December 2015
ACTIVITY TITLEAUG’ 2015SEPT’ 2015OCT’ 2015NOV’ 2015DEC’ 2015
No. of Trades4,8974,3723,6383,7365,303
Value of Trades632,460.39940,110.381,659,255.90814,296.981,199,981.87
The number of bonds listed at the end of 2015


Download GFIM Manual