Gov’t targets $3bn annually with launch of Diasporan investment account

Gov’t targets $3bn annually with launch of Diasporan investment account
Source: Joy Business
Date: 04-01-2020 Time: 02:01:16:am
Ken Ofori-Atta

The Finance Ministry has launched an investment and savings account targeted at Africans in the Diaspora.

The African Sankofo Account is modelled on a normal investment and savings product.

The product would be jointly supervised by the Bank of Ghana and the Finance Ministry.

The Central Bank is expected to soon come out with modalities on how it is going to be operated.

The Finance Ministry has noted that it plans to use the project to offer the Diasporans an opportunity to invest in the country.

Launching the product, Finance Minister, Ken Ofori-Atta, revealed that the initiative was informed by government's quest to ensure that the visits by the Diasporans bring tangible benefits to the economy while offering them an opportunity to make good returns on their investments.

The Minister added that the government has targeted more than $3 billion from the Diasporans through the African Sankofa Account.

He noted that remittances to Ghana have increased over the last three years, hence there was a good opportunity to use the new investment product to cream part of the remittances.

“In 2017, the country realised about $1.6 billion from remittances; it increased to  $2.5 billion in 2018 and there are projections it would cross  $3 billion in 2019, after securing about 2.5 billion dollars in the first quarter of this year,” he said.

Why is the government doing an investment account instead of a Diaspora bond? 

Ken Ofori-Atta noted the government was setting up the investment product because it did not require a rigid regulatory restriction to secure the necessary funds.

The Minister added that the investment account presents a more flexible approach to securing the required funds from investors.

Tourism Minister on the African Sankofa Account

Speaking to Joy Business, the Minister of Tourism, Babara Oteng Gyasi, said her Ministry was excited about the prospects the Sankofa Account presents.

She said it was welcome news that part of the funds from the investment account will be invested in tourism.