As an epilogue to my earlier article on understanding the 2019 asset management crises in Ghana, I’ve decided to share the opportunities that exist for asset management companies and the industry as a whole to enable players within the industry position themselves to unleash hidden value.   The nascent asset management industry in Ghana is very linear with clearly defined revenue streams and formidable vertical competitors (Commercial Banks & Fintech’s)....

In November 2019, the securities and exchange commission (SEC) revoked the licenses of 53 fund management companies in pursuant to Section 122 (2) of the Securities Industry Act, 2016 (Act 929).  SEC’s announcement attributed the revocation of the licenses to the failure of these fund management companies to return clients funds. As a professional who lived and observed events as they unfolded, I think I owe the system a great...

Summary: ETI’s share price has returned a disappointing -262.5% to shareholders since its listing by introduction in 2006 (2006: GHS 0.29p; 2020: GHS 0.08p) at its current market capitalisation of GHS 1.92B (USD 334.85M). Astonishingly, the Group’s Ghanaian subsidiary which represents 7.19% of the Group’s operating assets, commands an enviable market capitalisation of GHS 2.32B (USD 403 M) representing a total return of 1,209.5%. This article seeks to analyse the...

Summary Cal Bank shares currently sell at GHS 0.69, which represents a Price to book ratio of 0.4x meaning the Bank is selling for less than half its book value or actual net worth. In theoretical sense buying Cal Bank at a price of GHS 432.34 million or GHS 0.69 per share is like buying the company at a significant discount of over 58% to its book value.   At...