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%.<\/p>\n
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The measure aligns with reforms under Ghana\u2019s three\u2011year IMF\u2011supported programme, which aims to restore macroeconomic stability after a prolonged period of fiscal and currency pressure. Ghanaian Economist George Antwi\u2011Boasiako 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.<\/p>\n
He noted that in 2025 alone, Ghana saw nearly $1 billion flow out of the country through offshore investments by fund managers. \u201cThis 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,\u201d he said.<\/p>\n
<\/p>\n
\u201cGovernment intends to increase reserves to $20 billion by 2029, and this measure will help achieve that.\u201d While some observers have raised concerns that restricting offshore allocations could reduce portfolio diversification and increase domestic risk, Antwi\u2011Boasiako believes the benefits outweigh the downsides.<\/p>\n
<\/p>\n
\u201cThere are positives and negatives, but the positives outweigh the negatives. We want stability, stable currency, stable interest rates. That builds investor confidence,\u201d he said.<\/p>\n
<\/p>\n
He argued that while offshore investments may yield good returns, the long\u2011term benefits to Ghana\u2019s domestic economy are limited. \u201cHow do we benefit from investing all this money in United States (US) government securities or foreign companies? The short\u2011term returns are there, but long\u2011term, it doesn\u2019t benefit Ghana.\u201d<\/p>\n
<\/p>\n
Antwi\u2011Boasiako said the shift will require greater creativity and innovation from fund managers. \u201cThey now need to diversify locally. Real estate, local startups, pension\u2011fund opportunities, these sectors offer new avenues,\u201d he explained.<\/p>\n
<\/p>\n
The SEC has given fund managers three months to adjust their portfolios. Antwi\u2011Boasiako believes this is sufficient time for industry players to rethink strategies and expand domestic investment channels. \u201cWe don\u2019t need to repatriate all the funds we accumulate. This is an opportunity to support local economic development.\u201d<\/p>\n
<\/p>\n
According to Antwi\u2011Boasiako, the policy is likely to improve, rather than harm, Ghana\u2019s attractiveness as an investment destination. \u201cThis 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.\u201d<\/p>\n
<\/p>\n
He added that reducing excessive foreign\u2011asset outflows will help Ghana achieve a healthier balance between inflows and outflows, and may ultimately boost foreign direct investment (FDI). \u201cIf we strengthen our reserves, we attract more FDI. Chasing profits abroad doesn\u2019t help our domestic economy in the long run.\u201d<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":23530,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-23529","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Ghana\u2019s Securities and Exchange Commission (SEC) has directed local fund managers to reduce the share of assets invested in foreign markets, as part of a broader strategy to stabilise the Cedi and reinforce macroeconomic resilience.","published_date":null,"news_description":"Ghana\u2019s Securities and Exchange Commission (SEC) has directed local fund managers to reduce the share of assets invested in foreign markets, as part of a broader strategy to stabilise the Cedi and reinforce macroeconomic resilience.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23529\/revisions"}],"predecessor-version":[{"id":26467,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/23529\/revisions\/26467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/23530"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=23529"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=23529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}