Ghana ranked third in the first edition of the African Sovereign Wealth Fund Index polling 62 out of 100 %. Nigeria and Rwanda scored 62.49 % and 62.24 % respectively.
Ghana beat countries such as Angola, with 56.57%, Morocco 38.92% and Gabon 47.17%.
The index measures the size and other variables of sovereign wealth funds in Africa and was launched in Accra by the Konfidants Advisory Group during the Africa Sovereign Wealth Fund Summit.
The index chronicles the size of the existing 12 Sovereign Wealth Funds (SWFs) on the African continent. The total assets of these SWFs, according to the report stands at about $89 billion.
The indicators of the index are; governance and disclosure, size, domestic investment mandate and source of funding.
With regards to governance and disclosure, the index measures this by assessing the soundness of governance structure of the fund as well as public financial disclosure of the fund. So, it simply seeks to establish how transparent and accountable African sovereign wealth funds are.
Ghana’s Sovereign Wealth Funds
Ghana’s sovereign wealth funds; the Ghana petroleum funds was established in 2011 to target stabilization, infrastructure and future generations.
Currently, Ghana’s sovereign wealth fund has a size of about GHC 875 million.
The country has the Ghana Stabilization Fund (GSF) for purposes of stabilization of the economy if there is a dip in oil revenue, meaning funds accumulated from the sale oil are used to cushion our economy during periods of economic slowdown.
Ghana also has the Ghana Heritage Fund (GHF) for the purposes of saving for future generation. The Ghana Infrastructure Investment Fund (GIIF) also targets key areas for infrastructural development.
Speaking to JoyBusiness on the sidelines of the event, the Managing Partner of the Konfidants Advisory Group, Michael Kottoh, authors of the report, described Ghana’s sovereign wealth funds as fairly young in comparison to other parts of the world, however more must be done to grow the size of SWFs such as tapping into other areas and reducing overreliance on sources of funding such as oil revenue or in broader terms earnings from export or sale of commodities.
Sovereign Wealth Funds
A sovereign wealth fund refers to a state-owned investment fund used for purposes of stabilization of the economy, for infrastructural development and for savings for future generations of the country.
Have your say
More Business Headlines
- Ghana misses top 10 African destinations to visit in 2018
- Accra to host expanded China Trade Week event from June 19 - 21
- Former GNPC Boss, Theophilus Ahwireng named MD of MODEC
- Economy at the mercy of foreign investors, importers – BoG Governor
- Economist urges BoG to regulate ‘black market’ to ensure exchange rate is sustained
- West Africa’s mobile economy to reach $70bn by 2023 – report
- BoG constrained in fight against cedi depreciation – Asiedu-Mante
- NPA considers use of tech to fight petroleum fraud
- Huawei first-quarter revenue grows 39% to $27bn
- Navigating Sub-Saharan Africa’s recovery amid greater uncertainty
- Oil hits 2019 high on U.S. plan to tighten squeeze on Iran
- Upper West: 1,022 bags of maize harvested under PFJs
- Gov’t, Labour agree to build consensus on dev’t issues
- Ofori-Atta steers World Bank/IMF Development Committee on global dev't issues
- Airports Company considers reserving Terminal 2 for home-based carrier