ADVERTISEMENT

Investing

Ghana Regulator Reviews Pension Fund Investment Restrictions

A view of the Oxford Street in Accra, Ghana on February 28, 2023. (Ernest Ankomah/Bloomberg)

(Bloomberg) -- Ghana’s financial authorities are reviewing restrictions imposed on pensions funds that limit their investments in offshore assets.

The National Pensions Regulatory Authority previously introduced a requirement that pension funds seek authorization before buying foreign assets as a way to preserve foreign-exchange. The measure was implemented after Ghana began a restructuring of its debt, Nana Akua Asare, a spokeswoman for the NPRA, said by phone on Tuesday.

A review is now being conducted to determine the circumstances under which such investments can be authorized, she said.

Ghanaian law allows private pension funds to invest as much as 5% of their assets in offshore instruments.

Ghana began restructuring almost all of its debt in early 2023 as part of a deal with the International Monetary Fund. The country completed the overhaul earlier this year.

©2024 Bloomberg L.P.