Ghana has imposed a temporary ban on private pension fund managers investing in offshore assets, citing concerns about the potential negative impact on the country’s struggling cedi currency.
This decision comes as the government seeks to stabilize the economy following a challenging period of debt restructuring and high inflation.
The move has drawn criticism from some fund managers who argue that it limits their ability to generate returns for their clients and contradicts the government’s efforts to attract foreign investment.
They contend that investing a small portion of assets offshore would not significantly affect the domestic currency.
The National Pensions Regulatory Authority (NPRA) has confirmed that it is working with the government to clarify the rules governing offshore investments for pension funds.
The goal is to strike a balance between allowing funds to diversify their portfolios and protecting the domestic economy.
While the government’s intentions may be well-meaning, the ban could hinder the long-term growth and diversification of Ghana’s pension fund industry.
As the country continues to navigate economic challenges, it is crucial to find a solution that supports both domestic stability and the financial well-being of pensioners.