Ghana’s Securities and Exchange Commission (SEC) has introduced new measures restricting local fund managers’ investments in foreign securities, aiming to stabilize the cedi and strengthen the country’s macroeconomic framework.
Under the directive, local funds are now limited to investing no more than 20% of their assets in foreign markets. Previously unrestricted funds will now face a 70% cap. Furthermore, investments abroad will only be permitted in jurisdictions that maintain information-sharing agreements with Ghana’s SEC.
This initiative aligns with President John Dramani Mahama’s broader strategy to retain African financial resources domestically and reinforce the country’s economic resilience. The move is part of a three-year International Monetary Fund (IMF) support program designed to address the country’s recent economic challenges.
Ghana, a leading producer of gold and cocoa, is emerging from its worst economic crisis in decades. By limiting offshore investments, the government aims to strengthen foreign exchange reserves, stabilize the cedi, and improve investor confidence.
The President Mahama has emphasized that higher reserves will allow Ghana to meet international obligations without over-reliance on external financing, shield the economy from global volatility, and foster long-term economic growth.
The SEC’s directive reflects a strategic recalibration to ensure that domestic capital fuels local development while safeguarding Ghana’s financial stability in an increasingly uncertain global market.
Source : Business Insider Africa
