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Ghana Bans Funds From Taking Cash With $1.6 Billion Tied Up

  • Regulator probes 21 fund managers for allegedly flouting rules
  • Investments of as much as 9 billion cedis trapped in system
Updated on

As much as $1.6 billion of investments in Ghana have been trapped and the nation’s regulator is stepping in to avoid it getting any bigger.

Twenty one fund managers have been banned from accepting new money as Ghana’s Securities and Exchange Commission looks into whether they violated rules by placing client cash into illiquid assets. Investors who sought to withdraw funds from the firms have found their money unavailable, tied up in unlisted bonds, direct private equity stakes and other deals with small- and medium-sized businesses.