Ghana’s financial leaders have issued a stark warning: the nation’s ability to compete in a rapidly evolving global economy hinges on regulators’ willingness to modernize outdated frameworks and act decisively.
At a high-profile industry gathering hosted by the CFA Society Ghana, executives from pensions, insurance, and asset management firms painted a picture of a sector constrained by well-intentioned but often counterproductive rules, even as global markets race ahead.
The event, which drew top financiers and analysts, centered on a pressing theme—the need for regulatory agility in an era defined by technological disruption, inflationary pressures, and shifting investor priorities. Kofi Kodua Sarpong, CEO of Sarpong Capital, set the tone by critiquing Ghana’s strict 5% cap on offshore investments for private fund managers. While acknowledging regulators’ risk-averse instincts, he argued the policy stifles growth. “We’re missing out on transparent markets offering foreign currency returns,” Sarpong said, referencing the S&P 500’s 23% gain in 2024 and the Nasdaq’s tech-driven surge. “Fear shouldn’t dictate strategy. Diversification into global assets isn’t a luxury—it’s a necessity for resilience.”
His concerns echoed against a backdrop of mixed fortunes. While Ghana’s stock market soared by 56% last year—its best performance since 2013—this domestic success story clashes with realities abroad. The U.S. Federal Reserve’s cautious stance on rate cuts, despite cooling inflation, has kept global bond yields attractive, luring investors seeking stability. Yet Ghanaian firms remain largely sidelined, their hands tied by rigid investment rules critics call out of step with modern portfolio strategies.
The debate over offshore limits underscored a broader tension: how to balance safeguarding local markets with embracing global opportunities. Daisy Ofoliwaa Adjei-Boadi, CFO of Metropolitan Insurance, shifted focus to another critical pressure point—soaring inflation and a volatile cedi eroding consumer trust. “Families are cutting ‘non-essentials’ like insurance to survive,” she noted, highlighting a dangerous trend in a nation already grappling with low financial literacy. “When households can’t plan for risks, the entire economy becomes vulnerable.”
Adjei-Boadi also addressed the rising influence of ESG (Environmental, Social, Governance) criteria, urging firms to move beyond token gestures. “Slapping ‘green’ on a product without real change isn’t just dishonest—it’s bad business,” she said, pointing to Ghana’s urgent need for context-driven solutions in governance and sustainable energy. “Investors today demand authenticity, not buzzwords.”
But perhaps the sharpest critique came from Matthew Mani, Group COO of Axis Pensions Trust, who highlighted the bureaucratic lag plaguing regulatory responses. While praising recent fiscal reforms tied to Ghana’s $3 billion IMF program, he warned that slow-moving policies risk leaving the nation behind in sectors like AI and renewable energy. “Innovation won’t wait for committee meetings,” Mani said. “By the time consensus forms, the world has moved on.”
The event’s underlying message was unambiguous: Ghana’s financial sector stands at a pivotal moment. Domestic growth, while commendable, cannot shield the economy from global headwinds or the breakneck pace of technological change. Regulatory bodies, once seen as passive rule-enforcers, now face pressure to become proactive enablers—streamlining processes, raising investment caps judiciously, and fostering partnerships with private players.
Yet the path forward is fraught with complexity. Relaxing offshore limits too abruptly could expose Ghana to capital flight, while hasty ESG mandates might overwhelm smaller firms. Striking this balance, experts argue, requires regulators to engage deeply with industry realities rather than relying on one-size-fits-all policies.
As the evening concluded, one question lingered: Can Ghana’s regulators evolve fast enough to secure the sector’s future? With inflation still biting, tech reshaping finance, and global markets offering tantalizing—but distant—opportunities, the stakes have never been higher. The alternative—a stagnant sector held back by red tape—is a risk the nation can ill afford. For Ghana’s financial leaders, the clock is ticking.
