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The Role of Investment Banking in Raising Capital in Ghana JOSHUA ABOR Abstract Investment banking is the process of raising capital for businesses through public floatation and private placement of securities. The investment banking industry plays an important intermediation function in all market economies. This paper discusses the role of investment banking in Ghana. The regulatory framework for initial public offering, competition within the Ghanaian investment banking industry and capabilities of an ideal Investment Banker are also discussed. Investment banking in Ghana is a relatively new phenomenon exhibiting low level of competition. There are presently only 14 registered Licensed Dealing Members (LDMs) engaged in investment banking activities. Most of the capabilities of an ideal investment banker are also lacking. Recommendations are thus made for Ghanaian investment banks to improve on these capabilities in order increase the competition within the investment banking industry and subsequently attract more firms to go public. 1.0 Introduction A progression is usually a move in a forward or upward direction. In most spheres of life, this connotes a regression. The development of an economy is not an exception to this reasoning. Economic development is not achievable without an improved rate of capital formation. One important way of capital formation for developing economies is through improving their investment banking industries. Investment banking is the process of raising capital for businesses through public floatation and private placement of securities. Investment banks work with companies, governments, institutional investors and wealthy individuals to raise capital and provide investment advice. Originally, investment banking meant the underwriting and distribution of securities. Today investment bankers also invest a lot of effort into helping companies design deals and the securities to finance them, and the