The Securities and Exchange Commission (SEC) has moved to calm investor fears about Ghana’s emerging green bonds market, assuring that upcoming issuances—especially those from corporate bodies—will not suffer the same fate as investments affected by the Domestic Debt Exchange Programme (DDEP).
Speaking to journalists on the sidelines of the Ghana Green Bonds Market Development Programme in Accra on Tuesday, January 27, the Director-General of the SEC, James Klutse Avedzi, explained that the new green bond framework is fundamentally different from government-issued debt instruments.
He noted that the DDEP involved government bonds, which many people traditionally believed were risk-free, but recent events have changed that perception. According to him, the green bonds being developed are targeted at supporting the real sector and corporate entities, not government financing.
Mr. Avedzi said the SEC will enforce strict regulatory oversight to protect investors and build confidence in the market. He stressed that the Commission’s aim is to ensure that these bonds perform well on the Ghana Stock Exchange and allow investors to earn capital gains over time.
On government borrowing, he confirmed that plans have been announced to issue more than GHS10 billion in infrastructure bonds, but said whether such bonds would qualify as green bonds would depend on what is stated in their prospectus. For now, he said, there is no clear indication that they will fall under the green bond category.
He reaffirmed that the SEC’s primary responsibility is to protect investors and ensure the integrity of the market.
Source: citinews
