Ghana’s Sovereign Wealth Fund Raises $29 Million Ghana’s Sovereign Wealth Fund (SWF), the Ghana Stabilization Fund (GSF), has successfully raised $29 million through the issuance of a domestic bond. The bond has a maturity of three years and an interest rate of 21.5%. The funds raised will be used to support the government’s ongoing infrastructure and development projects, as well as its efforts to stabilize the economy amidst global volatility. The GSF is mandated to manage Ghana’s surplus oil revenues and invest them in a diversified portfolio to generate long-term returns for the benefit of future generations. The fund was established in 2011 and currently has assets under management of over $400 million. The bond issuance was well-received by investors, indicating confidence in the GSF’s management and the outlook for the Ghanaian economy. The successful bond issuance demonstrates the government’s commitment to fiscal discipline and its efforts to mobilize domestic resources for development. The GSF plays a crucial role in Ghana’s macroeconomic management. By investing surplus oil revenues in a diversified portfolio, the fund helps to reduce the vulnerability of the economy to commodity price fluctuations and generates additional income for the government. The fund also serves as a savings mechanism for future generations, ensuring that the benefits of Ghana’s oil resources will continue to be felt long after the oil reserves have been depleted. The successful bond issuance is a testament to the growing confidence in Ghana’s economy and the GSF’s ability to manage surplus oil revenues effectively. It is expected that the fund will continue to play a significant role in Ghana’s economic development in the years to come.Ghana’s Sovereign Wealth Fund Generates $29 Million in Revenue in 2023
Ghana’s Sovereign Wealth Fund Generates $29 Million in Revenue in 2023 The Public Interest Accountability Committee (PIAC) has reported that Ghana’s Sovereign Wealth Fund, known as the Ghana Heritage Fund (GHF), generated $29 million in annual revenue in 2023. The total value of the fund since its inception in 2011 has reached $1 billion. Meanwhile, the Ghana Petroleum Fund (GPF) received $330 million, representing 56% of the planned allocation for 2023 and 57% of the disbursement to GPFs in 2022. The GHF received $99 million, accounting for 30% of the GPF allocation. PIAC emphasizes that at least 30% of the amount remaining after distributing the Annual Budget Funding Amount (ABFA) must be paid to the GHF, as required by the Petroleum Revenue Management Act (PPRMA). The distribution to the GHF in 2023 was 43% lower than in 2022 but 56% higher than the revised expected distribution for 2023. Proposals to Increase GHF Income PIAC suggests options to increase the fund’s income in anticipation of the depletion of Ghana’s oil reserves in the coming years. Isaac Dwamena, the committee’s coordinator, rejects calls to withdraw money from the fund. Instead, he advises the government to follow the investment strategies of countries with high returns on their sovereign wealth funds. Dwamena suggests emulating countries like the United Arab Emirates and Saudi Arabia, which have diversified their economies beyond natural resources by building funds that generate income beyond the lifespan of their natural resources. He stresses the need to establish a clear goal and investment strategy for the GHF, aiming to reach $2 billion by 2031. Dwamena notes that countries like Norway and the UAE make withdrawals from their funds due to their returns and investment strategies. He suggests increasing the allocation to the GHF to enhance its revenue-generating capacity for budget support.
Ghana’s Sovereign Wealth Fund (SWF), established in 2011 to manage and invest the nation’s surplus revenue from natural resources, has successfully raised $29 million through an initial public offering (IPO) of its shares. The IPO involved the sale of 50 million shares at a price of $0.58 per share, representing 10% of the fund’s total issued share capital. The offering was open to both Ghanaian and international investors, with a minimum investment requirement of $1,000. The proceeds from the IPO will primarily be invested in long-term, income-generating assets, with a focus on the energy, infrastructure, and real estate sectors. The SWF aims to generate sustainable returns for the Ghanaian government and people. The successful IPO is a significant milestone for Ghana, demonstrating the government’s commitment to managing its natural resource wealth responsibly. The SWF’s investments are expected to contribute to the country’s long-term economic development and financial stability. The SWF’s portfolio currently includes investments in various Ghanaian companies, including oil and gas exploration and production, telecommunications, banking, and manufacturing. The fund’s management is committed to adhering to strict governance standards and ensuring transparency in its operations.
