Ghana’s Securities and Exchange Commission (SEC) has ordered local fund managers to scale back offshore investments as part of efforts to support the cedi and bolster macroeconomic stability.
Ghana, a major producer of gold and cocoa, is emerging from its worst economic crisis in decades and is expected to complete a three-year support programme with the International Monetary Fund in August.
In a circular issued late on Friday, the SEC said that with immediate effect, local fund managers will be permitted to invest no more than 20% of assets under management in foreign securities. Funds that were previously allowed to invest all of their assets offshore will now be capped at 70%, according to Reuters.
The regulator added that investments in foreign securities will only be permitted in jurisdictions that have information-sharing arrangements with Ghana’s SEC.
Mahama pushes to keep capital at home
The move aligns with broader efforts by President John Dramani Mahama to retain capital within the domestic and regional economy.
Business Insider Africa earlier reported that Mahama has argued that a significant share of Africa’s foreign reserves remains parked in Western financial institutions, limiting the continent’s ability to finance its own development.
Ghana has set an ambitious target to grow its foreign exchange reserves beyond $20 billion by 2029, a goal Mahama says is central to restoring macroeconomic stability and strengthening resilience to global shocks.
He said stronger reserves would enable the country to meet its international obligations without excessive reliance on external financing, while helping to stabilise the cedi, shield the economy from volatility in global markets and improve investor confidence, particularly as many African economies face tighter global financial conditions.
