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Cash-Starved Ghana Fund Managers Face 20-Fold Capital Hike

  • Markets regulator seeks to strengthen investment-fund industry
  • Investors are struggling to retrieve savings tied up in banks
Updated on

Caught in a crisis in which they’re unable to meet client withdrawals, Ghana’s fund managers will be forced to set aside 20 times more capital than they do now to avoid running out of cash again.

The Securities and Exchange Commission will require money managers to increase their minimum capital reserves to 2 million cedis ($365,260) from the current 100,000 cedis, Director General Daniel Ogbarmey Tetteh, said by phone from the capital, Accra. The directive, which will require law changes, will be fully communicated by the end of the year for compliance by December 2020, he said.