Ghanaian banks reach out for new capital

With a landmark Eurobond tucked under its belt, an accelerating stock market and first oil production just two years away, Ghana is well positioned to tap the new capital required for its banking sector, writes Kevin Godier.

Ghana’s banking industry is eyeing over US$1bn in new capital injections after an eightfold increase in the minimum capital requirement for banks announced in February 2008 by Ghana’s central bank. With almost all banks’ capital laying below the new threshold – lifted by the Bank of Ghana (BoG) from C7mn (US$7.2mn) to C60mn (US$61.9mn) – “the industry as a whole is far short of the new requirement”, says Gregory Kronsten, director, Africa research, at London-based independent research boutique Trusted Sources.