The Securities and Exchange Commission (SEC) is in the process of developing Social Bond Guidelines aligned with the International Capital Market Association’s ICMA Social Bond Principles (SBP).
According to the SEC, the guidelines would aim to encourage the development of a credible and transparent social bond market, promote financing for projects that deliver positive social outcomes while ensuring integrity, transparency, and accountability in the issuance and reporting of social bonds.
Eligible uses of proceeds will include affordable basic infrastructure, essential services such as healthcare and education, affordable housing, employment and Small and Medium Enterprises support, food security, and the empowerment of vulnerable populations.
Overall, the SEC’s approach is explicit about aligning capital market development with national and global sustainability goals.
The SEC adopted a structured approach to integrating sustainable finance into the domestic capital market under the Capital Market Master Plan (2020–2029).
Its strategy rests on three mutually reinforcing pillars: Standardised Disclosure, Credible Green Finance Instruments, and Strong Governance and Enforcement. These measures aim to enhance transparency, improve disclosure quality, protect investors, reduce greenwashing risks, and mobilise private capital for environmentally and socially beneficial projects.
To this end, SEC approved the Ghana Stock Exchange (GSE)’s ESG Disclosure Guidance Manual in 2022, which adopts the Global Reporting Initiative (GRI) Standards as the common ESG reporting framework for listed companies.
The manual guides materiality, sector-specific disclosures, and the integration of ESG into corporate strategy and reporting.
By promoting a single internationally recognised framework, the SEC seeks to improve comparability, strengthen disclosure quality, and boost investor confidence.
More than half of the 39 listed companies now report on ESG indicators, reflecting progress while highlighting the need for continued capacity building.