ACCRA, Feb 9 – Ghana’s Securities and Exchange Commission has moved to restrict offshore investments by local fund managers, stepping up efforts to shield the cedi and reinforce financial stability as the country nears the end of an IMF-backed recovery programme.
In a circular issued late Friday, the regulator said fund managers will now be permitted to allocate no more than 20% of assets under management to foreign securities, effective immediately. Funds that previously had the flexibility to invest entirely outside Ghana will now face a ceiling of 70% for offshore exposure.
The SEC said foreign investments will only be permitted in jurisdictions that maintain information-sharing arrangements with Ghana’s regulator, a measure aimed at improving oversight and reducing regulatory risk.
The decision comes as Ghana continues to stabilise its economy following its deepest crisis in decades, marked by a debt restructuring, elevated inflation, and sharp currency depreciation.
Authorities are seeking to consolidate recent gains in macroeconomic stability ahead of the expected completion of a three-year International Monetary Fund support programme in August.
By curbing capital outflows through portfolio investments, policymakers hope to ease pressure on foreign exchange demand and support the local currency, while encouraging greater domestic investment at a time when confidence is gradually returning to Ghana’s financial markets.
