GSE anticipating listing of a gold-backed exchange-traded fund this year

The Ghana Stock Exchange (GSE) is anticipating the listing of a gold-backed exchange-traded fund (ETF) on the bourse this year.

The first and currently listed gold ETF on the local bourse is the ABSA-backed gold ETF with 2.9 million issued shares priced at GHS 345.50 with a market capitalization of GHS 1 billion.

The upcoming listing of the gold-backed ETF was disclosed by the Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, during an interview with Bloomberg monitored by norvanreports.

According to her, the Minerals Income Investment Fund (MIIF) will be behind the listing of the gold ETF.

“We are working with the Minerals Income and Investment Fund, which is our state sovereign wealth fund based on natural resources and this year, they are going to launch a new gold-back ETF on the market,” she quipped, adding that MIIF will be looking to make further listings of its gold ETF on different exchanges following its initial listing on the GSE.

Originally, the MIIF Gold ETF was to be listed on the GSE in September 2023 but has been delayed to this year with the GSE MD confident of the listing taking place this year.

The ETF is expected to provide portfolios and Pension Funds with options away from government securities.

The MIIF Gold ETF will be supported by sustainably mined gold from small-scale mining firms under the MIIF’s Small-Scale Mining Incubation Program. The small-scale mining incubation program is a direct investment by MIIF into the small-scale sector.

Additionally, the small-scale mining companies under the MIIF incubation program will be listed on the alternative exchange of the GSE in line with the plan to develop mining juniors and very good mid-tier Ghanaian mining companies.

The MIIF is a sovereign minerals fund mandated by the Minerals Income Investment Fund Act 2018, (Act 978) as amended, to maximize the value of dividend and royalties income accruing to the Republic of Ghana in a beneficial, accountable, and sustainable manner and to monetize Ghana’s mineral wealth in a manner which would bring long term value to Ghana and develop and implement measures to reduce the budgetary exposure of Ghana to minerals income fluctuations.

Source: Norvanreports