Exclusive: Ghana blocks pension funds from offshore investment on currency concerns, sources say

Ghana is tightening regulations on private pension fund managers' ability to invest in offshore assets, citing concerns over the impact on the Cedi currency.

After pension reforms in 2010, the industry has grown significantly, with 73% of assets managed by private firms.

These firms are allowed to invest up to 5% of their assets abroad, but the National Pensions Regulatory Authority (NPRA) recently halted offshore investments, citing the need for government approval.

Fund managers argue that the current policy limits potential returns and creates a contradiction, as foreign pension funds can invest in Ghana.

The finance ministry is focused on protecting liquidity and stabilizing the economy amidst the cedi's ongoing depreciation.