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The Benefits of Online Forex Trading in Africa
With financial markets becoming accessible to more and more people, Forex Trading Opportunities have grown exponentially over the past two decades. Online Foreign Exchange Trading, commonly known as FX Trading, refers to the practice of buying and selling currency values with the aim of making a profit. Being a global market, FX Trading is conducted all over the world, with New York, London, Tokyo, and Hong Kong serving as the major financial hubs with the largest markets. Having previously been a preserve mainly of large financial institutions such as banks, multi-national corporations, and the wealthy few, Online FX Trading has become increasingly popular with many who have internet access and a fair knowledge of the basics of FX Trading, owing to its relatively easy entry requirements and suitability for beginners. Although retail online forex trading has for a long time been considered a secondary source of income, many who have treated it as a primary source of income, have gained financial freedom by participating in it, given that a 9 to 5 job alone, most often than not, does not offer us the financial stability and freedom we desire. Although a 9 to 5 may offer you some job security, that doesn’t seem to be holding much ground in this post-pandemic economic situation we’re faced with now. In this article, we discuss the benefits of trading forex in Africa, both for individuals and for their respective countries as a whole. 1. A LARGE AND GLOBAL MARKET TRADEABLE 24-HOURS-A-DAY The sheer size and scale of the online Forex market sits at the top of the list when it comes to the benefits of online trading. As the world’s largest financial market, about $6 trillion on average, is exchanged daily. At ALL hours of the day, traders in every part of the world, are buying and selling currency pairs, making forex a truly global marketplace, with a very wide scope of profitability. In our very first article, How to Make Money from Forex in Ghana, we indicated the fact that, unlike other financial or capital markets, the forex market does not need a physical location to operate from, but rather, operates via an electronic network of corporations, banks, and individuals engaged in trading one currency for another. This makes it possible and convenient for forex markets to operate 24 hours a day, 5 days a week, across different time zones and financial centers. What makes this possible is the overlap in trading times of major sessions. Where most stock exchanges are open from 9am-4pm (depending on the country from where it operates), the FX Market operates continuously from the start of the week on Monday morning in New Zealand, till Friday afternoon New York time when it closes. Since it operates this way, the online FX market is not subject to any centralized exchange system; As long as there’s a market open somewhere in the world, you can trade. This is great news for those who want to start off trading on a part-time basis. 2. FLEXIBILITY AND WIDE RANGE OF CURRENCY PAIRS The very first point serves as an excellent springboard for another benefit of trading forex in Africa, which is the ability to participate in trading activities from anywhere on the globe. As already stated above, with market sessions, one is not limited to traditional office hours. Thanks to technological advancements, you don’t need to be tied to a desk, staring at six screens of charts to gain a decent handle on the market. With the additional element of a wide range of currency pairs to trade in, there is the flexibility to trade in your chosen currency pair at your own preferred time. Due to the flexibility Forex trading offers, a lot more people with regular jobs are choosing online day trading as an additional source of income. If you trade online full-time, you get to set your own hours and be your own boss. You can work from the comfort of your home, making profitable trades, while giving you leverage to spend time with your family and loved ones. Given this opportunity, you’re able to make time for other priorities, which a regular job may not fully allow you to. You can work even when you’re on a trip to some Island; all you need is a smart device with a good internet connection. That is the beauty of forex trading – the ability to make money while on the move, anywhere, anytime. 3. ACCESSIBLE AND BEGINNER FRIENDLY Yes, you read right. The Online Forex market can be beginner friendly if you make the commitment to acquiring the knowledge and equipping yourself with the required tools. First-Time traders who can only afford to make smaller investments can easily enter the forex market. Trading with the Best Forex Broker grants you access to real-time market pricing, news, price charts, tools, and strategies. As mentioned earlier, accessibility is one of the biggest advantages of forex trading; Compared to other capital markets, it does not require a large initial investment, making it easy to enter, and accounting for its popularity among beginner and even hobbyist traders. As a beginner, a good forex broker offers you a range of educational sources and Demo Accounts allowing you to practice and hone your skills on the market without the risk of losing real money. Demo Accounts essentially offer you a “Try-Before-Purchase” test run. They give you the opportunity to get used to a trading platform, familiarize yourself with market movements, and develop a risk management strategy, all without making any financial commitments, in a simulated live trading environment. It’s critical to bear in mind, however, that regardless of your investment capital, Knowledge and skill are the bedrock of successful profitable FX Trading. 4. HIGH LIQUIDITY Online Trading benefits include High Liquidity. In capital markets or trading terms, Liquidity refers to the ease with which an asset can be bought or sold. Combined with the high volumes and 24-Hour-a-Day activity, the global scale of
Geldex Marks 1st Anniversary with Digital Finance Training for over 300 Tertiary Students
Geldex Invest, a multi-regulated broker entity, as part of its 1st anniversary commemoration, has embarked on a campaign to train over 300 undergraduates from selected universities in ‘Digital Finance’. The four selected universities to benefit from the initiative are the Koforidua Technical University, Valley View, Ghana Telecommunication University, and the University of Ghana, with some students already enjoying the hands-on training. Geldex believes that it is important the youth are included in decision-making and given appreciative opportunities for work, training, and to innovate. It intends to train these 300 undergraduates on the capital market, and the need to indulge and explore career and financial paths in forex trading. The capital market, especially the foreign exchange market, is the most liquid market on earth. Global Gross Domestic Product (GDP) of the forex market in 2019 amounted to roughly US$142trillion, with the entire worth of the market standing at US$2.4quadrillion, and with over 170 currencies being traded. This was reported by the Bank of International Settlement. The population of sub-Saharan Africa is projected to double by 2050, as indicated by the United Nations and currently, 60 percent of the population is under the age of 25, making Africa the world’s youngest continent. The burgeoning youth population is both an opportunity and a challenge for the continent. Internet, digital penetration, and engagements of African youth increased from 24.4 percent in 2018 to 90 percent in 2020 indicated by ITU Digital world (Child Online Protection Organisation). But most of the activities online by the youth are not very productive even though great career and financial opportunities abound online. Such a high number of young people is an opportunity for the continent’s growth, but only if these new generations are fully empowered and trained to realise their best potential. The United Nations estimates that 16 million young Africans are facing unemployment. On average, 11 million young people join the African labour market each year, yet the continent generates only 3.7 million jobs annually, a gap too wide to be ignored. It is to this effect that Geldex Invest, a multi-regulated broker, as part of its 1st commemoration is embarking on this Digital Finance programme for the youth. The International Market Analysis Research and Consulting (IMARC) group predicts a compound annual growth rate of six percent for the forex industry in the next five years. The industry is green in Africa, especially in Ghana – the more reason why there is need to study and train to bridge the educational and capacity gap in the hope of future opportunities. Geldex Invest has made its mark in the African Financial industry with its operations in this short time. The official sponsor of the African Financial Traders awards 2021, in collaboration with Women in Forex Ghana, under her initiative ‘The Elevate Ghana Forex Project’, has trained over 400 youths in forex education across four regions since the beginning of the year, 2022, and continues to impart financial literacy into the youth. The goal is to adequately equip the youth with the skill set that is relevant in this pandemic era for a better livelihood, gear the youth toward productive online engagements, and reduce cybercrime while helping government’s policy to reduce unemployment.
Choosing The Best Forex Broker To Trade With In Ghana And Africa
Spurred on by greater internet accessibility, more investment knowledge, and proliferation of forex brokers, online Forex trading has risen in popularity in recent years in Africa, with more and more traders emerging day-in-day-out. To trade the forex market online, choosing the best forex broker, and one you can trust, is a vital first step, as your broker will form a critical part of your trading equation, and essentially be your business partner. Online forex trading is gaining traction and momentum in Africa as a whole, and Ghana in particular, and the challenge many beginner traders are faced with, is finding a legitimate broker they can trust; one who is not only reliable but also within arm’s reach; as close and real as can be. Forex brokers are an integral part of the forex trading equation, and a trader’s aim should be to find the best forex broker available. If you’re new to forex trading, you may get confused by the flood of advertisements from different firms. That is why we have simplified it, helping you take the guesswork out of your search for the best forex broker to trade with. A forex broker is an entity that acts as an intermediary between institutional or individual clients and the global forex market. In addition, the forex broker’s job is to ensure your orders are executed. The forex broker market is saturated with many options, and it has become necessary to apply certain metrics in choosing the right forex broker to attend to your needs. Not all forex trading brokers are regulated, and it’s very important to be wary of unregulated firms, to avoid being scammed or your trading capital being done away with. Take your time to find a reliable forex broker to ensure your money and trades will be handled appropriately and to best industry practices. REGULATORY COMPLIANCE Simply, is the broker licensed and regulated by a reputable regulatory authority. As obvious as this may be, you will be surprised at how many unlicensed and unregulated forex brokers there are. The best forex brokers in Africa are licensed and regulated by industry regulators to grant professional and retail clients the ability to trade foreign currencies by offering them a secure online trading platform. Due to concerns regarding the integrity of a broker, and the safety of clients’ funds, accounts should be opened only with brokers who are duly licensed. Choosing a broker who is licensed to offer the services you need, helps you avoid potential scams, and reduces the risk of losing your money should the broker go bankrupt. Being a dominantly virtual industry, many people do not really know who they are dealing with, because everything is conducted digitally. You should evaluate a broker’s license and compliance with industry regulations, and not pay too much attention to glitzy websites. We advise you to stay away from forex brokerage firms that do not display their regulatory license numbers openly, as this may be a red flag. Many forex brokers these days also tend to show license numbers that are not theirs, hence, to be completely sure, you should visit the regulatory authority’s website to check if the said license number is true, and belongs to who they claim it belongs to. If you’re in Ghana or Africa, you can find a trustworthy broker licensed and regulated by either one of the following: CYSEC-Cyprus (As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law), the FSC-South Africa, ASIC-Australia, or the FCA-United Kingdom. Forex trading companies in Ghana are most likely to be regulated by any of these reputable industry regulators, any of which can render confidence that your broker is legit. As a globally recognized brand, regulated in the most advanced capital market jurisdictions across the globe, Geldex Invest is not only licensed, but also offers you the ultimate package of an excellent trading experience, and exceptional customer responsiveness. We are licensed and regulated by many of the leading financial regulatory authorities for international brokerage firms CHOICE OF DIFFERENT ACCOUNT TYPES It’s a plus when a broker offers you a variety of accounts to choose from for online forex trading. This means they can cater to traders with different financial abilities, needs, and aspirations. The best forex trading companies in Africa recognize the power of choice goes a long way. Closely related to the above, is the offer of Demo Accounts. Trading on a demo account is essential before trading on a live account. Trading on a demo account gives you the opportunity to trade in real conditions, but with virtual money. This means it’s absolutely risk-free. The main purpose of the Demo Account is to know the ins and outs of trading, put your strategy to the test, and discover your strengths and weaknesses before you go into a live account. We encourage beginners to trade on demo accounts for only so long; enough to get your feet wet and move to the live account. VARIETY OF TRADING INSTRUMENTS The more tradable instruments a broker offers, the more opportunities are unveiled for you. When choosing a forex broker, go with one that doesn’t only offer the major currency pairs, but also the Minors and Exotics, as well as precious metals and other commodities, for the purpose of diversifying your portfolio. Seeing as trading comes with risks, it’s important to manage them in an adequate manner. The best Forex Trading companies in Africa give you the opportunity to diversify your portfolio this way, so as to manage risk in the most effective manner possible. Gold, for instance over the years, has proven to be a very popular trading instrument during times of political and economic instability, such as is currently being experienced globally. If you find yourself in one of the largest gold-producing countries in the world and own a smartphone, you have no excuse not to learn to trade gold on the forex market. TRADING PLATFORM These include: More chart frames
Facts to know about the most successful traders in Africa
Like most great things in life, there are truly few shortcuts to become successful in forex trading. But learning from someone who has the knowledge and expertise in advanced forex trading, definitely gives you a lot of leverage to succeed in advanced online currency trading. If you have started trading forex in Ghana only recently and want to ensure you do it right, then you have stumbled on the right article. One of the principles for achieving success in any area, is following those who have achieved success where you seek to, and in this article, we will share some facts and characteristics of the most successful forex traders in Africa, and hope you can imbibe them as well. Many of these characteristics are key traits that the most successful forex traders have used to master the market and generate consistent profits month in and month out. The Forex market is an ever-changing entity, where each day presents us with different and unique scenarios for trading the market. Therefore, to trade successfully, it’s important to understand that the forex market is fluid and very dynamic, and the question many ask when they begin this journey is what characteristics or attributes are needed to enable them stand a good chance at becoming successful and profitable independent forex traders There is no single formula that all successful forex traders use to ensure profitability on the forex market. Trading is both Art and Science, and the idea that success comes overnight could not be farther from the truth. It takes time to learn the ins and outs, manage your risk and refine your skills and yourself as a trader. That is how the best traders in Ghana and the world over, have done it 1- Begin with a plan in hand You have probably heard the saying “failing to plan, is planning to fail”. Your trading plan doesn’t need to be complicated; you can start by including basic guidelines like – Your Entry and Exit Level Triggers – Position Size – Stop Loss – Take Profit The most successful forex traders in Africa treat advanced online currency trading as a business; complete with plans, daily routines, schedules and obligations. Before you trade, it’s important to recognize the value of good preparation. Most successful businesses always begin their business journey with a good business plan; a formal statement revealing the goal of the business and the guidelines to reach those goals, without which achieving those goals will be difficult. The same applies to the business of advanced forex trading. Successful traders adhere to a set of guidelines to help them execute consistently profitable trades that will help them reach their income goals. This will prevent you from making decisions on a whim. Remember the saying “plan your trade, and trade your plan”. 2- Having Realistic Expectations Some traders may show off their rewards from forex trading, but won’t tell you about the years of effort they put in before they found success. The fact is that, like any other profession, becoming a successful forex trader takes time. The best Forex Traders in Ghana know that forex trading is not a get-rich-quick scheme. While some may see it as a sprint, the most successful forex traders in Africa see it as a marathon, with small rewards accumulating as the race goes on; not with the goal of becoming a millionaire overnight. Trading with high expectations of how fast you will make money is a bad start for any trader. Although the market can make some huge moves than you anticipate sometimes, you should not expect to invest $250 in your trading account, and make $1,000 each trade. If your goal is to double your money every day, it sounds great but it’s not realistic. A realistic goal must be attainable; within your current capabilities. The best realistic goals are short-term goals; make your first goal a small one, and then continue to increase your them as you experience success. The most successful traders stay flexible with their Take Profits, sometimes settling for less, if indicators show that’s all they can take out of the market at that moment. 3- Being Analytical Having an analytical mind is one of the most important facts about the best traders. This means being able to figure out some simple math quickly, understanding percentages, and calculating things like Risk: Reward ratios. The good news is that it can be learned if you don’t already have this. And once you have learned it, and practised it for some time, you are well on your way to becoming one of the most successful traders in Africa, and the world. Being analytical of the market also behoves on you to be analytical of your own performance. You can do this by keeping a record of your trades. At the end of each month, quarter or year, your trading account will most likely be in one of three main categories: your trades either made a profit over the period; were roughly break-even; or lost money. Irrespective of the category you fall into, keeping and reviewing a track record of your trades, is key to building on your strengths and working on your weaknesses. The best Forex traders in Ghana have used this to improve their performance and become successful. 4- Being Disciplined and Patient Discipline is crucial when you’re trading Forex. Our definition of discipline when it comes to advanced online forex trading is to determine your exit strategy even before you enter the trade. Discipline is also the ability to “pull the trigger” when your system indicates to do so. The market gives you infinite opportunities to trade and once you decide which position you’re taking, you should enter your stop loss and take profit orders. This also reflects the ability to be patient until your system triggers an action point. Good online traders are disciplined and patient, and trade as professionals. Becoming a successful forex trader requires strong discipline, and it
Digital finance, forex trade industry a boom or doom to the African economy?
Africa has seen a paradigm shift in the fronts of business operations in the past few years, especially in 2020 at the peak of the COVID-19 pandemic brouhaha. The African continent is creating an entirely new developmental path harnessing the potential of its resources and people, as highlighted by the World Bank Group report. Most economies in the Sub-Saharan region swiftly gravitated toward digitalization, especially in the financial sector. Globally, all economies are fiercely pushing to find their stands in the digital ecosystem to broaden their technological and digital horizons to keep up with the ever-changing demands on products and services and in all aspects of the government and corporate world. The digital economy thrives on technology or smart gadgets but whilst it is estimated that almost 45 percent of Africans are with smartphones and on social media, unfortunately, about 85 percent of the population of about a 1.216billion Africans have no knowledge of what the digital finance industry and online trading are all about. Africa has been tagged as a lucrative destination for foreign investment even though as a whole the continent is dealing with economic challenges; growth has been quick and substantial. It is emerging as a new frontier for forex /online trading. Per the Bank of International Settlement survey in 2019 on foreign exchange and the counter market report, South Africa’s forex daily volume was US$2.21billion with a total turnover for all forex instruments standing at US$21billion. Nigeria’s daily volume stood at $314 US million whiles Kenya’s daily volume stood at US$192.66million thus making South Africa’s rand rank top of the traded currencies in Africa and 18th globally. Reports indicated that the retail forex and online market in South Africa have high rocketed from $14billion to $21billion between 2013 and 2016 and this was attributed to impressive stands and liberal political views on forex matters. Unfortunately, the online trading and the blockchain technology industry are met with hostility in Africa as it throws governments out of their control due to a lack of proper fundamental grounding in the capital market. A robust regulatory and strict licensing regime with massive technical know-how is required to tap into this trillion-dollar industry which currently possesses the ability to save Africa from drowning in unemployment and cyber criminality. Why are African Governments shying away from Foreign Exchange Market/Online Trading? There is a big question that needs to be answered. Which is ‘why are African governments shying away from the biggest financial industry in the world (foreign exchange market/online trading)? The Business and Financial Times in publication on March 1, 2022, headlined ‘Regulatory Dilemma Makes Bank of Ghana Resolute Against Cryptocurrencies’, is a statement that needs probing as it said a lot about the development of the country’s capital market./p> The digital finance industry mostly dominated by the foreign exchange market (online trading) has been considered a nonstarter in most African countries. Could this be due to a lack of robust regulation framework, lack of technological know-how, or just conservative bias and fear of change? The Forex Suggest released a report stating that the forex market in 2021 is worth US$2.409quadrillion with 7.6 trillion volumes of daily transactions. Experts say Africa represents the most exciting growth opportunity for international forex brokers. Thank goodness for brokerage firms such as Geldex Invest and the likes operating in other African countries to massively impact financial literacy training across the regions despite the limitations in the region The central banks must innovate and move faster to find their feet in providing regulatory frameworks that will help the continent tap into this huge financial stream whilst it still flowing seamlessly Central banks intervene in the foreign exchange market to achieve a variety of overall economic objectives such as controlling inflation, maintaining competitiveness, or maintaining financial stability As Leonard Oniriuba, Bank of Risk Management in Development Economies 2016, rightly put it, the dynamics of the foreign currency market and deals are quite intriguing as the market dwells on the volatility of securities and financial instruments and is inherent in some measure of risk. Yet the market also presents interesting risk-return paradoxes that can make any economy profitable. What the Future Holds for African Economies Reports indicate that 85 percent of economies are adopting digital currency and blockchain technology. African countries like Ghana and Nigeria are frontiers in the digital currency movement. Banks are fast drifting towards online banking operations, the digital economy has become the new order and human involvement is at this point at a disadvantage It’s paramount to emphasize that robotics and automatic engineering are taking over human Labour in the next few years looking at the fast adaptation of technologies the world over Although the broader market has experienced a variety of unexpected negative effects due to the COVID-19 pandemic and the Russian Ukraine war, the forex market has remained relatively unscathed. The volumes of trading increased due to the volatility the pandemic brought on. The increased volatility globally brought a huge number of opportunities to forex traders. The Bank of international settlement survey 2020 indicated that the global gross domestic product (GDP) in 2019 amounted to roughly US$142 trillion -meaning the turnover of the forex market is almost 17 times larger The forex trading market dwarfs even the largest stock exchanges in the world for example the National Association of Securities Dealers (NASDAQ) which has a daily volume averaging around US$200billion. Over 170 currencies and thousands of stocks, indices, derivatives, etc are traded online on the global forex market. Some forecasts such as the IMARC group predict a compound annual growth rate of six percent in the next five years globally. Can we now say a great financial breakthrough found Africa in rather unsettling circumstances? Article by: Gifty Annor-Sika Asantewah, Financial consultant-Geldex lnvest.
Digital Finance and the Foreign Exchange Trading Industry: A Boom or A Doom To The African Economy?
According to Foresight Africa Series 2019, Africa contributed an annual revenue of $1.2billion to the capital market. This amount, in comparison to the global capital market revenue contribution, is abysmal. Despite the meager capital market contribution, Africa continues to dominate the world as the continent has the most youthful population in the world, the report says. The youthful population presents important opportunities for businesses in an environment of slow global growth. Africa has seen a paradigm shift in the frontier of business operations for the past few years, especially in 2020 during the pandemic Brouhaha. The continent is creating an entirely new developmental path harnessing the potentials of its resources and people, a report from World Bank Group highlighted. Most economies in the Sub-Saharan region swiftly gravitated toward digitalization, a dramatic push from traditional commerce to e-commerce, especially in the financial sector. Globally, all economies are fiercely pushing to find their feet in the digital ecosystem to broaden their technological and digital horizons to keep up with the ever-changing demands on products and services and in all aspects of the government and corporate world. Almost 45% of Africans are with smartphones and are on social media yet 85% of the population of 1.216 billion Africans don’t have any idea of what the digital finance industry and online trading is all about. Reports indicates that 85% of economies are adopting digital currency usage and blockchain technology. African countries like Ghana and Nigeria are frontiers in the digital currency movement. On the macroeconomic front, digital currency strengthens the control of governments over its currency, facilitates easy cross-border trading transactions, and enhances the formulation of macro and micro economical policies. Banks are fast drifting towards online banking operations, the digital economy has become the new order, and humans at this point are disadvantaged. It’s paramount to emphasize that robotics and automatic engineering are taking over human labour in the next few years looking at the fast adaptation of technologies the world over The big question is why are African governments shying away from the biggest financial industry in the world (foreign exchange market/online trading)? The Business and Financial Times in their 1st March 2022 report headlined “Regulatory dilemma makes bank of Ghana resolute against cryptocurrencies “, a statement that needs probing as it said a lot about the development of a country’s capital market. The digital finance industry mostly dominated by the foreign exchange market (online trading) is a non-starter in most African countries. Africa has been tagged as a lucrative destination for foreign investment. A report from forex suggests that even though the whole continent is dealing with economic challenges, growth has been quick and substantial. Could this be due to a lack of robust regulation framework, lack of technological know-how, or just conservative bias and fear of change? The Forex Industry released a report stating that the forex market in 2021 is worth $2.409quadrillion with 7.6trillion volumes of daily transactions. Experts say Africa represents the most exciting growth opportunity for international forex brokers. Brokerage firm such as Geldex Invest is leading the way by massively impacting lives through financial literacy training programmes across the regions in spite of the limitations in the region. Central banks intervene in the foreign exchange market in order to achieve a variety of overall economic objectives such as controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy depend on factors including the stage of a country’s development, the degree of financial market development and integration, and a country’s overall vulnerability to shock. The dynamic of the foreign currency market and deals are quite intriguing as the market dwells on the volatility of securities and Financial instruments and is inherent in some measure of risk. Yet the market also presents interesting risk-return paradoxes that can make any economy profitable indicated by Leonard Oniriuba(Bank of Risk Management in Development Economies 2016). Although the broader market has experienced a variety of unexpected negative effects due to the COVID-19 pandemic and the Russian Ukraine war, the forex market has remained relatively unscathed. In fact, the volumes of trading increased due to the volatility the pandemic brought on. The increased volatility globally brought a huge amount of opportunities to forex traders. Banks of international settlement survey 2020 indicated the global gross domestic product (GDP) in 2019 amounted to roughly $142 trillion -meaning turnover of the forex market is almost 17 times larger. The forex trading market dwarfs even the largest stock exchanges in the world for example the National Association of Securities Dealers (NASDAQ) which has a daily volume averaging around $200 billion. Over 170 currencies and thousands of stocks, indices, derivatives, etc are traded online on the global forex market. Some forecasts such as IMARC group predicts a compound annual growth rate of 6% in the next 5years globally Africa is emerging as the new frontier for forex /online trading. With over 41 currencies spread across 51 countries, the continent broad retail and spot forex trading has enormous potential. Per the Bank of international settlement survey in 2019 on foreign exchange and over a counter market report, South Africa’s forex daily volume was $2.21billion with a total turnover for all forex instruments standing at $21billion. Nigeria’s daily volume stood at $314million whiles Kenya’s daily volume stood at 192.66million, thus making South Africa’s rand rank top of the traded currencies in Africa and 18th globally. Reports indicated that the retail forex and online market in South Africa rand rocketed from $14billion tog $21billion between 2013 and 2016 and this was attributed to impressive stands and liberal political views on forex matters. Unfortunately, the online trading and the blockchain technology industry is met with hostility in Africa as it throws governments of their control due to lack of proper fundamental grounding in the capital market. A robust regulatory and strict licensing regime with massive technical know-how is required to tap into this trillion-dollar industry which currently possesses the ability to save Africa from drowning in unemployment and
Aftermath Of Russia-Ukraine War On Africa’s Economy
Trademap, the WTO’s international trade database estimated that Africa imports seven times more goods from Russia than it exports to the African continent. In 2020 alone, Africa imported $12.4billion worth of goods from Russia as compared to the $1.6billion worth of goods bought from them. With this, it is evident that a striking trade deficit of more than $10 billion already exist, toppling with the insurgence of the ongoing war, poses a bigger threat to the emerging African Economy. Even though Russia holds only 2.4% of the Africa’s market share against 19.6% for China- the continent’s largest trade partner – the effect is going to be enormous as the continent depends solely mostly on importation. Africa depends on Russia for the importation of cereal which amounts to 30% of overall cereal imports, especially wheat which alone accounts for about 95% of cereals imported into the continent. Africa buys mineral fuels such as coal, oil products, gas from Russia and these account for 18.3% of the total imports. Overall, volumes of goods traded stood at $14.8billion as at 2020. There has already been a decline in trades between 2019 and 2020 due to Covid-19 which has affected global trade immensely. Data indicate that between Africa and the rest of the world, trade fell by 14% to $900 billion in 2020. With Russia as a major producer of commodities such as oil, gas, wheat, and aluminium, the sanctions against them and market concerns about the War’s disruption on supply chain, have definitely caused commodity prices to soar. First pronounced effect will be the surge in global commodity prices, particularly for oil, gas and wheat, Georgieva Dietz said. Brent crude has whipsawed to all-time high in the last 12months to $110/bl, signaling an over 80% price jump Heightened energy prices will be felt most severely in transport and utility cost including gas, electricity and other fuel like kerosene, indicated by Renaissance Capital bank of Moscow. The disruption of the supply chain as earlier mentioned coupled with sanctions against Russia will drive commodity prices high and inflation will sky rocket. This will hit households spending, investment and also raise the risk of social unrest. Surging commodity prices will also create winners and losers across Africa and the world. African countries most vulnerable to the War are those that import huge shares of cereal like Kenya, Nigeria, Tanzania, South Africa, and Egypt. Meanwhile in the area of energy, Africa’s importers like Ghana and Nigeria will feel the heat more due to their over dependence on the fuel importation from Russia, as the giant of the world’s largest exporter has been hit by various sanctions and faces a potential embargo. On the winning side, Nigeria is likely to benefit from the war as a commodity exporter as the supply constraint commodity price boom that began in 2021 will last longer, according to Renaissance Capital bank of Moscow. Major impacts on Africa As an Emerging economy, fuel tend to be the biggest import for the African Economy, so a price increase has a material effect on import bill, and by implication, the trade balance and current accounts. The war stands to cause a flare up in Africa’s debt. One of the key things noted is the backlog of lighter external financing conditions causing grave concerns about debt positions across Africa. Ghana is not at immediate risk of default as the country has not got much debt payable in the next few years. In a vote at the U.N. General assembly condemning Russia’s invasion, 28 African countries (51%) voted in favour, 17 abstained (31%) one voted against and 8 Countries were absent. This indicates the war will have diplomatic ramification on the continent. The war will tend to reinforce the trend and will imply pressure for Africa countries to choose sides The continent remains scarred by cold war segregation and will be a terrain where super powers play out their rivalries as seen with the recent resurgence of Moscow in Africa as Prof. Carlos Lopez of the University of Cape Town and the UN Economy Commission for Africa (UNECA) said. Reports on March 2nd also indicated that the war may disrupt the completion of a major steel project in Nigeria – the $8billion Ajaokuta steel plant – that has already been subjected to delays for 40years. While it’s still early days, the domino effect of the Russian War will no doubt trickle down to the African Economy, worsening the already struggling economies.
Concerns Over Inflation and Other Economic Indicators Impacting the Ghana Stock Market
A Financial Advisor to Geldex Invest, Ms Gifty Annor-Sika Asantewah, has bemoaned the slow start of performance of the Ghana Stock Exchange in 2022, noting that the rising level of inflation, depreciation of the cedi and other economic indicators are badly affecting the performance of the Ghana Stock Market. According to the analyst, the stock market has gone through some challenges in recent years but managed to bounce back last year. However, she observed that 2022 has not started as predicted, which can “partly be blamed on the pandemic and declining confidence of investors.” “Many markets are under distress due to the pending pandemic that slowed investment. As such, that may be just one of the reasons why trading activities declined in the first few months of 2022… That being said, the Ghana Stock and investment terrain for past few years has gone through some dramatic scrutiny that has left some investors overwhelmed with low market confidence and trust.” – Annor-Sika Asantewah Miss Annor-Sika however, explained the reason why some major stocks such as: Fan Milk LTD, MTN Ghana and others that performed brilliantly last year, 2021, are now struggling this new year 2022. “Investors are more likely to purchase or trade stocks if they feel or are convinced the stocks or the market instrument will increase in value in the future. Currently, few stocks such as, SIC Insurance Company PLC and others are doing relatively well, while others like MTN Ghana, Fan Milk Limited, Unilever and some banking stocks are not doing well…Looking at the statistics, foreign investors holdings on equities market dipped. The Ghana Stock Exchange’s report on fund managers holdings for February showed that foreign investors contributed 82.0% of equity market trades as of end of February 2022 in comparison to 86.6% for the same period in 2021. Concerns over inflation, depreciation of the cedi, high interest rates, and other economic indicators is gradually driving foreign investors away from the Ghanaian stock market. These indicators affect how money is spent by investors. They [investors] are making certain ‘safer’ investments a more attractive alternatives to stocks.” – Annor-Sika Asantewah Slow Level of Technology in GSE The financial advisor expressed worry over the slow level of technology being adopted by the Ghana Stock Exchange. She noted that the Ghanaian equities market is behind when it comes to technological advancement. “The impact of disruptive technology on capital markets is as significant as fire was to the cavemen. In fact, technological progress in capital markets offer investors the opportunities to boost flexibility, scale efficiencies and reduce complexity in how the market operates. It is time that leaders in the industry embrace new-age technologies which are further going to transform the Ghanaian capital markets ecosystem in the upcoming years. Stock markets are embracing new technologies and innovations. Many are shifting from the conservative stock market trading to digitalization which the Ghana stock exchange is yet to embrace. I hope that the market expands to other innovative instruments beyond just stocks, shares and bonds to attract more traders and investors.” – Annor-Sika Asantewah Miss Annor-Sika observed that investors are gradually changing tastes in regards to trading activities, types of stocks to indulge and how it should be done. She thus, predicted that the performance of the Ghanaian stock market might further plummet in the coming weeks and months. “Frankly, the performance of the Ghanaian bourse might worsen due to the uncertainties facing our monetary and fiscal policies this year coupled with increment in taxes. Unfortunately, the cedi is on a downward spiral and thus, eroding investors confidence.” – Annor-Sika Asantewah Miss Annor-Sika moreover, sided with Bloomberg Africa’s prediction that the invasion of Ukraine by Russia is likely to further hurt Africa’s coronavirus ravaged and fragile economies through fiscal constraints, weaker investment flows and higher costs. The pronounced challenge, she noted, will have implications on inflation in the country. Meanwhile, the Ghana Statistical Service (GSS) announced that inflation has accelerated to 15.7% in February 2022 compared to 13.9% in January.
WIF targets $5,000 for deprived communities
By Julius K. SATSI, Accra The Women in Forex (WIF) Ghana with its partners have expressed optimism towards raising US$ 5,000 to support the needy in deprived communities through its Elevate Ghana Forex project. The fund, raised through benevolent individuals, will help train 1,000 youth in Forex through the “Elevate Ghana Forex” project and support the needy in deprived communities across the country. The Elevate Ghana Forex project is the initiative of the WIF Ghana to educate young people in forex trading and help alleviate unemployment and poverty. The Founder and President of WIF Ghana, Madam Annor-Sika Asantewah disclosed this during the maiden charity ball held in Accra at the weekend. She said the fund, which is expected to be generated from February to September, would be disbursed through a project and two non-governmental organisations (NGOs) to help the deprived communities She said the funds raised would be disbursed through Menarche-Pad a Girl project to help alleviate menstrual poverty – a situation where girls practice poor hygiene during menstruation. The two NGOs include Cover Me Worldwide to help children gain skills in reading ability and Maternal Right Ghana to help women and children during child delivery. Madam Asantewah urged benevolent individuals to donate towards the fund, which would help most youth out of employment through free forex trading for the 1,000 youths, targeted in three universities across the country – University of Cape Coast, Valley View University and the University of Ghana. She said the organisation intends to send the “Elevate Ghana Forex” project to the Volta, Northern, and Eastern regions. She said calls had come to extend to the Ahafo region, which it would consider in subsequent years since the project is an annual one. The Mayor of Belmopan in Belize, Central America, Her Worship Mayor Sheran Palacio, who graced the occasion, urged Ghanaians not to abandon trades and traditions of the older generation in the quest to go after modernity. She said Ghanaians and Africans must not relent on tilling the soil as it hungers to give humanity its produce As the first female Mayor in her country, she advised young females to take education seriously because it has the power to transform their lives, opening them to the numerous opportunities that exist. The Chief Executive of Loly Fx, Ms Ruth Ofori said: “forex trading is not for the faint-hearted” but was quick to add that it is the aim of the Elevate Ghana Forex project to help the youth to gain a fundamental understanding of the forex market. Ms Ofori, who is a Forex facilitator with the project said, many Ghanaians are now getting to know and appreciate the dynamics of forex trading, unlike previous years. She said: “People are broadening their horizon on forex trading and trying to know what it entails and how they can go about to make some money.”
Launching the ‘Charity Ball’
Women in Forex Ghana in partnership with Geldex Invest, Lolyfx and Blooming Trading Limited, has launched an ‘Elevate Ghana Charity Ball’ programme as part of its initiative to train over ten thousand (10,000) youths in digital finance by 2030 and to raise funds for other charity programmes. In the intervening time, the President of Women in Forex Trading Ghana, Ms Gifty Annor Sika Asantewah, disclosed that the training will introduce students across three selected tertiary institutions in the country to forex trade, equip them with the basic skills and develop their interest in the market which could serve as a part-time job for them while in school. Three public and private universities have been selected to benefit from the free forex trading (digital finance) programme this year under the Elevate Ghana Forex Project. The beneficiary universities include: the University of Ghana (UG), University of Cape Coast (UCC) and Valley View University (VVU). One thousand students (1,000) are expected to be trained in this year from these tertiary institutions and three other identified regions namely: Volta, Eastern and Northern. The Youths to Take Advantage of the Industry “The forex market is very liquid and is currently the most liquid financial sector in the world. Last year, it had $1.26 quadrillion revenue and in daily volumes it had $1.6 trillion. If the whole of Ghana decides to trade in the digital market, all things being equal, everyone will earn $2,000 daily. “This is how much liquid the trade is and it is an advantage for the unemployed graduates. Sometimes, people come into this space and because they want quick money, they do not learn the trade well and end up losing their money to fraudsters and then complain that digital finance is a scam.” – Ms Gifty Annor Sika Ms Gifty Annor Sika averred that Forex trading is extremely tough and needs great mental qualities such as patience, discipline, perseverance, to name a few to be consistently profitable. As such, she noted that the Elevate Ghana Forex Project will offer great trading tools that will help the participating youth to improve their trading knowledge to become better traders. As a result, she opined that “tertiary students are better positioned to comprehend the process and learn the trade faster, hence the decision to involve them.” The Forex guru explained that the participants will be taught to master over 3 emotions namely: Fear, Greed and Hope. She emphasized that these skills can only be mastered through years of experience trading in market for years in all conditions and learning from the experienced traders. She thus, indicated that experienced traders and experts will be engaged to train the participants. Ms Annor Asantewah noted that the proceeds from the programme will be donated to three charity organisations which consist of Maternal Right Ghana, Menarche Pad a Girl Project, and Coverme Worldwide. The Mayor of Capital Garden City of Belmopan Belize in Central America, Sheron Palacio, who was the guest of honour at the event, commended the organisers for supporting women empowerment.
