In a decisive move to safeguard the national currency and cement macroeconomic gains, the Securities and Exchange Commission (SEC) has issued a new directive significantly curbing the volume of capital local fund managers can move offshore.
The directive, released late Friday, comes as Ghana enters the home stretch of its three-year International Monetary Fund (IMF) support program, which is slated for completion in August 2026. The move is seen by analysts as a strategic intervention to keep liquidity within the domestic market and reduce speculative pressure on the cedi.
New Caps on Foreign Securities
The SEC circular outlines a tiered restriction strategy that fundamentally alters how Ghanaian fund managers can diversify their portfolios. The new regulations include:
Standard Fund Limit: Local fund managers are now prohibited from investing more than 20% of their total assets under management (AUM) in foreign securities.
Offshore-Specialized Funds: Specialized funds that previously enjoyed 100% offshore flexibility have had their limit slashed to 70%.
Information Sharing Requirement: In a bid to increase transparency, any remaining foreign investments can only be placed in jurisdictions that have formal information-sharing agreements with Ghana’s SEC.
Protecting the Recovery
The timing of this circular is critical. As a leading producer of gold and cocoa, Ghana is currently navigating the tail end of its most grueling economic crisis in a generation. By restricting capital flight, the regulator aims to ensure that domestic wealth contributes directly to national stability.
“The objective is clear: prioritize the cedi’s health and ensure that the progress made under the IMF program isn’t undermined by excessive capital outflows,” noted one market analyst in Accra.
Impact on Fund Managers
The directive is effective immediately, forcing fund managers to pivot their strategies toward local equities, government bonds, and domestic private equity. While the move strengthens the cedi, some industry players have expressed concerns regarding the limited depth of the local capital market to absorb the redirected funds.
The SEC, however, maintains that these measures are essential for long-term stability and to prevent the volatility that often accompanies unrestricted offshore exposure during periods of economic transition.
