Yep Pkoli your findings will be useful to other wazuarians.

Personally I cannot imagine how an investor will just trade or invest in one market, become a local champion and is fulfilled when there are bountless opportunities elseway.


It is more interesting , more exciting but strange.

Even African fund managers do not do that.

Yeah @ pk . Please get back to us. Much appreciated .

Hi Pals,

I sent a mail to African Alliance Ghana yesterday after obtaining the address from website of the link that Mzee young had given us: Please see the response:

Thank you for your interest in doing business with African Alliance Securities Ghana Ltd (AASG), a Licensed Dealing Member of the Ghana Stock Exchange (GSE).

Due to the difference in the Know your client (KYC) requirements of each country, you must have separate accounts in each country office. However for only institutional investors using custodians, we currently provide this service where such clients can open an account and deal with one business while executing trades on various African markets. We are currently streamlining our procedures to allow for trading across countries for individuals.

You will therefore have to open a separate account with us

Automation of the GSE trading and settlement platforms has transformed the processes by which trade is carried out on the GSE. Below are the details about the new procedures involved:

A prospective investor must first open a brokerage account with AASG and a depository account in the GSE Securities Depository (GSD) prior to trading in securities.


Opening a Brokerage Account

· Individuals
The investor completes AASG’s Account Opening Form (AOF) giving some personal details, a color passport picture, a copy of an identification document (voter card, driving licence, passport, national id) , bank details and evidence of the bank details provided (cancelled cheque, bank statement).

Opening a Depository Account

To open the depository account in the GSD, investors must complete a GSD Securities Account Registration Form (GSD 1a for Individuals and GSD 1b for institutional investors).

Purchasing/Selling securities

· Purchase

If not using custodians, the client completes a purchase order either by mail or in person, after which the trade would be executed only against cleared funds (deposits can be made by cheque, bank transfer or direct cash deposit into AASG’s Clients Account and evidence of the deposit submitted).

· Sale

If not using custodians, the client completes a sale order either by mail or in person, after which the trade would be executed against the client’s holdings per their depository account.


Settlement

Settlement is on T+3.

The market does not recognise trade failures although there may be a delayed settlement.

In addition the exchange has established a fidelity fund for compensating investors in cases where brokers are unable to satisfy claims in respect of liability incurred by them in connection with stock broking business.

Fees

· Equities
The Ghana Stock Exchange stipulates the maximum total commission and levies chargeable as 2.5% of the value of the transactions. The total levies and commission are made up as follows:

Regulatory Levies (non-negotiable)Broker CommissionTotal Levies + Commission
GSESECGSDCMarket dev’tMaximumMaximum
0.35%0.15%0.15%0.05%1.8%2.5%


Our quoted broker commission is 1.5%, although we may give discounts depending on the size of the transaction. Therefore as regulatory levies amount to 0.7% of the value of the transaction, the total levies and commissions we charge is 2.2%.

· Bonds
The Ghana Stock Exchange stipulates the maximum total commission and levies chargeable as 0.145% of the value of the transactions. The total levies and commission are made up as follows:

Regulatory Levies (non-negotiable)Broker CommissionTotal Levies + Commission
GSESECGSDCMarket dev’tMaximumMaximum
0.02%0.009%0.009%0.002%0.105%0.145%


Our quoted broker commission is 0.105%, although we may give discounts depending on the size of the transaction. Therefore as regulatory levies amount to 0.04% of the value of the transaction, the total levies and commissions we charge is 0.145%.

Nonresident foreigners may only purchase Government of Ghana Bonds with 3yr or more maturity.

Exchange Controls
There are no exchange controls currently and there is full and free foreign exchange remittability of:
a) The original capital or principal amounts
b) Any capital gains
c) Dividends or interest payments
d) Related earnings and refunds
Kindly find attached our individual Account Opening Form (AoF) and GSD Securities Account Registration Form (GSD 1a). Also attached is a guide to completing the necessary forms to open brokerage and depository accounts with African Alliance Securities Ghana Ltd.

Let me know if you require further information/clarification.
Regards
Salimy Bedwei-Majdoub

On behalf of

African Alliance Securities Ghana
+233 30 2679761-2/2679723 (tel) |+233 30 2679698 (fax) |+233 244640652 (mobile)
bedwei-majdoubs@africanalliance.com | www.africanalliance.com

@Pkoli thanks for the info...i believe Ghana,Kenya,Uganda and Nigeria will provide great returns for investors in the next 10 years...

I'm in Angola once the BVDA opens. Portuguese we will learn in the process.

Which broker do you use to trade at the FTSE and NYSE? I'm more cautious of actively trading in that sense. My principle is buy and hold. I just think that opportunities in the developed countries are not that exciting at the moment hence my focus on first trying to find bargains right here in Africa.
But tell me more ... I might be interested in checking this out.

@Mv_ufanisi

This are the two brokers i use:

1) www.stockbrokers.barclays.co.uk
2) TDWaterhouse.co.uk

Only other thing I would mention is when you start trading start by focusing on the big names, those that are listed on the FTSE rather than the small companies listed on AIM. The two groups have different returns and risk profiles, but you are better off with the less risky FTSE companies until you get a feel of what you are doing.

It's hugely rewarding i must say and quite addictive, all the best.

Many thanks Mzee young for this info. I think this will really help since it takes a whole three weeks to clear an international cheque in Kenya. I have experienced it with Stanbic Ug and a check from US.

Is there a possibility of recapitalizing my shares with dividends? I would like to start small and build my capital..like the richest man in Babylon, I would like re-invest the fruits of my investments.

How about the Pan African bank, EcoBank? I am sure they have branches in Ghana. Do you have an idea whether they are interconnected from Lagos-Accra-Nairobi?

Best regards

@ young much thanks my brother.

It looks like the dream of one Africa will come true sooner rather than later! I will research these options.

@Mzee young

Thanks, I will talk to AAGS to inquire about the bank. I see alot of challenges in the currency fluctuations isses. It is better to have a dollar/Euro account for that matter. I will give it a short and should be in the business in a months time.