Under a new circular issued by the regulator, fund managers may now invest a maximum of 20% of their assets under management in offshore instruments. Funds that were previously permitted to invest 100% offshore will now be capped at 70%.
The measure aligns with reforms under Ghana’s three‑year IMF‑supported programme, which aims to restore macroeconomic stability after a prolonged period of fiscal and currency pressure. Ghanaian Economist George Antwi‑Boasiako on Monday spoke to Channel Africa about the implications of the move, saying the policy is intended to consolidate recent gains, including what he described as a notable appreciation of the cedi over the past year.
He noted that in 2025 alone, Ghana saw nearly $1 billion flow out of the country through offshore investments by fund managers. “This policy is meant to limit the outflow of forex from Ghana to the rest of the world. We need to deal with volatility in our currency and preserve our international reserves, now around $3 billion,” he said.
“Government intends to increase reserves to $20 billion by 2029, and this measure will help achieve that.” While some observers have raised concerns that restricting offshore allocations could reduce portfolio diversification and increase domestic risk, Antwi‑Boasiako believes the benefits outweigh the downsides.
“There are positives and negatives, but the positives outweigh the negatives. We want stability, stable currency, stable interest rates. That builds investor confidence,” he said.
He argued that while offshore investments may yield good returns, the long‑term benefits to Ghana’s domestic economy are limited. “How do we benefit from investing all this money in United States (US) government securities or foreign companies? The short‑term returns are there, but long‑term, it doesn’t benefit Ghana.”
Antwi‑Boasiako said the shift will require greater creativity and innovation from fund managers. “They now need to diversify locally. Real estate, local startups, pension‑fund opportunities, these sectors offer new avenues,” he explained.
The SEC has given fund managers three months to adjust their portfolios. Antwi‑Boasiako believes this is sufficient time for industry players to rethink strategies and expand domestic investment channels. “We don’t need to repatriate all the funds we accumulate. This is an opportunity to support local economic development.”
According to Antwi‑Boasiako, the policy is likely to improve, rather than harm, Ghana’s attractiveness as an investment destination. “This will strengthen our positioning. Investors want stability, and Ghana is showing that strength. Inflation is doing well, the cedi is stable, and we are building our reserves.”
He added that reducing excessive foreign‑asset outflows will help Ghana achieve a healthier balance between inflows and outflows, and may ultimately boost foreign direct investment (FDI). “If we strengthen our reserves, we attract more FDI. Chasing profits abroad doesn’t help our domestic economy in the long run.”
–ChannelAfrica–
