Empowering the Next Generation: Financial Literacy for a Sustainable Future—A Ghana Stock Exchange Initiative

In an increasingly complex financial landscape, the ability to navigate investment decisions and manage personal finances is not just a luxury, it is a necessity. Acknowledging this fundamental requirement, the Ghana Stock Exchange (GSE) has risen to the occasion by encouraging financial literacy across a wide range of people. The GSE has actively positioned itself as a beacon for financial education, reaching out to the youth, market women, professionals, and even international stakeholders as the world is faced with economic uncertainty. This article highlights the GSE's broad financial literacy initiatives and demonstrates its dedication to public education, forging partnerships, and building a more accessible financial system in Ghana.

The foundation of both individual and societal economic empowerment is financial literacy. It closes the knowledge gap, empowering people to make well-informed choices that can result in savings, the building of wealth, and long-term financial security. The gap that exists in Ghana between the general people and the formal financial sector is particularly noticeable in rural areas. The Ghana Stock Exchange is working to close this gap by elevating financial education and putting an emphasis on young people, who are the future. It is crucial for Ghanaians to understand how to participate in investment opportunities efficiently as the country's financial sector develops and evolves. In addition to being a tool for personal growth, financial literacy is also a national priority for promoting a society that is financially inclusive.

Understanding the value of early financial education, the GSE started a comprehensive youth investment education programme in partnership with the Central Securities Depository (CSD), the Young Investors Network (YIN), and other partners. Over 50 schools in five regions of Ghana were involved in this campaign, which reached out to 15,000 students. The objective was to ensure that the next generation of financially literate people are raised with an early interest in investing and finance, inculcating financial habits that can result in a lifetime of financial stability.

Launch of the Youth Investment Education campaign in 2023

To reach a wider audience, the GSE, in partnership with the Ministry of Finance and Licensed Dealing Members (LDMs), took part in a national financial literacy tour, reaching 1,800 participants including people from the military, customs, fire service, market women, spare parts dealers and other government establishments. By providing helpful guidance on investing, saving and understanding capital markets, the project sought to demystify financial services. To ensure that the message of financial empowerment resonated across all socioeconomic levels, the outreach was customised to fit the unique needs of each group.

 Students and teachers from Awudome Senior High School.

The GSE also opened its doors to 16 organisations in 2023, facilitating educational tours to its premises. This initiative attracted 886 individuals from a variety of institutions, including secondary schools, universities and international delegations. These tours not only provided a deeper understanding of how the stock market functions, but also inspired students and young professionals to explore careers in finance and investment.

 Members of Dhana Mercury, an Investment Group from the USA

The GSE increased its efforts in 2024, building on the momentum it had created in 2023. Working with CSD and YIN, the National Youth Investment Education Programme was able to reach an extra 45,000 students in five different regions. Comprehensive training covering the value of early investing, savings and financial market knowledge were offered by the programme. Our partners with digital trading and investment tools have been part of our student outreach programmes to introduce digital tools to students and have signed up over 500 students so far. Concurrently, in 2024, 12 academic institutions paid a visit to the GSE, giving 475 students an opportunity to learn how the Exchange operates from the inside. Additionally, the GSE continued to participate in key international forums to raise awareness about financial literacy. At the Made in Africa Leadership Conference, the GSE re-emphasised its commitment to educating young people under the theme "Making Africa Work for Africa's Youth." Similarly, its participation in the World Federation of Exchanges (WFE) Ring the Bell for Financial Literacy further underscored its role in promoting investor resilience, focusing on the long-term benefits of financial education.

 Students and lecturers from the University of Cincinnati, USA, on an educational tour to the GSE

The Ghana Stock Exchange (GSE) recognises the crucial role that the media plays in shaping the public’s understanding of financial markets and investment opportunities. To strengthen this partnership, the GSE initiated "GSE Time with Financial and Economic Journalists," a programme aimed at broadening journalists' knowledge of the GSE’s offerings and overall financial market dynamics.

The GSE does not only offer conventional financial education through its projects. The Exchange has embraced environmental, social, and governance (ESG) investing as a growing trend. In 2023, the GSE participated in the WFE Ring the Bell for Climate, where listed companies engaging in ESG activities were invited to share their experiences. This initiative was critical in educating the public on the importance of sustainable investing, addressing the growing global interest in aligning investment strategies with environmental and social responsibility.

The Ghana Securities and Investment Institute (GISI), in which the GSE is a shareholder, runs securities courses designed to upgrade the knowledge of professionals and experts in the securities industry. These courses are also aimed at equipping beginners with comprehensive knowledge about the structure, operations and regulations of the securities market.

The GSE's financial literacy activities are part of a long-term strategy to create a financially literate and empowered society. The Exchange is constantly looking for opportunities to expand its services, reach new markets, and adapt to the changing financial landscape. Going forward, it will emphasise digital financial literacy, sustainable investing, and early education.

As Ghana positions itself as Africa's major financial hub, the importance of financial literacy in facilitating that progress cannot be over-emphasised. Through its broad programmes, the GSE not only educates the public, but also lays the groundwork for a more accessible and robust financial sector.