Ghana Restricts Offshore Investments By Fund Managers

Wednesday 4th February 2026

By inAfrika Newsroom

Ghana offshore investment limits took effect immediately after the Securities and Exchange Commission imposed new caps on how much local fund managers can invest in foreign securities, in a move aimed at supporting the cedi and strengthening macroeconomic stability.

Under the new framework, fund managers are limited to investing no more than 20% of their funds in foreign securities, Reuters reported. Entities that previously had permission to invest all their funds abroad will now face a 70% offshore ceiling, while offshore investments will be allowed only in countries that have an agreement to share financial information with Ghana’s SEC.

The policy is a currency-management tool as much as a capital-market rule. Ghana has been recovering from a severe economic crisis that put heavy pressure on the cedi and raised the cost of servicing foreign-currency obligations. In that setting, large offshore allocations by domestic funds can amplify demand for foreign exchange, especially when investors rebalance portfolios during periods of uncertainty.

By limiting capital outflows through managed funds, authorities are trying to reduce structural pressure on the currency without relying solely on interest rates or direct FX interventions. The measures also aim to keep more savings available for domestic financing—supporting government securities markets, corporate debt issuance, and local equity liquidity.

However, the move raises practical questions for pension funds and asset managers that use offshore exposure to manage risk, diversify returns, and hedge against domestic shocks. Restrictions can reduce portfolio choice and, if not matched by deep local markets, can increase concentration risk.

Reuters linked the policy to Ghana’s broader stabilisation track as the country nears completion of a three-year IMF programme expected to end in August 2026. For many African economies, Ghana’s approach is closely watched because it shows how regulators use macroprudential and market rules to manage currency stability while rebuilding investor confidence.

Ghana offshore investment limits: what changed

Ghana offshore investment limits cap most fund managers at 20% foreign securities exposure, while previously exempt entities are now capped at 70%, with eligible destinations restricted to jurisdictions that share information with Ghana’s SEC.

Next steps

Asset managers are expected to adjust portfolios to meet the new thresholds and clarify compliance timelines with regulators. Investors will also monitor whether the restrictions stabilise FX demand and whether local markets absorb increased domestic allocations without distorting prices.

Why it matters

For Ghana, the rule is intended to protect the currency and reinforce stabilisation. For African capital markets, it illustrates how regulators can use investment limits to manage FX pressures when external balances are tight.