Ghana blocks pension funds from offshore investment - SABC News - Breaking news, special reports, world,

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The majority of contributions are invested in Ghanaian assets, including Ghana government Eurobonds.

A general view of the Makola market, one of the country's largest trading centres in Accra, Ghana March 26, 2022.Ghana is clamping down on private pension fund managers who want to invest in offshore assets on concerns it could worsen pressure on its cedi currency, three industry sources told Reuters.

Ghana’s state-run pension fund handles tier one contributions towards employees’ monthly retirement benefits, which are mandatory, while private firms manage tiers two and three – mandatory and voluntary contributions respectively – for lump-sum payment at or before retirement.However, private fund managers have been eager to explore offshore investment opportunities following the restructuring of 31 billion cedis of their holdings under a local debt rework.

“They threatened to sanction us but we didn’t find any basis in law,” one of the source at a fund management company told Reuters. Mbroh said discussions were taking place to streamline the rules and clarify how to value offshore investments for contributors and fund managers, although he did not know when they would conclude.Ghana is concluding a challenging debt-restructuring process under the G20’s Common Framework initiative, having defaulted on most of its $30 billion international debt in 2022.

“The ministry won’t say ‘no’ but it’s about how do we protect the economy, the liquidity,” the source said.

 

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