A new continent-wide study has revealed that 60% of Africa-focused investment vehicles (IVs) are currently domiciled outside the continent, depriving African countries—like Ghana—of critical capital flows needed to support small businesses, job creation, and inclusive economic growth.

The 190-page report, titled “Study on Africa as a Jurisdiction for Domiciliation of Investment Vehicles”, was released during a high-level pan-African webinar co-hosted by the Collaborative for Fund Domiciliation in Africa, Mennonite Economic Development Associates (MEDA), and the Africa Impact Investing Group.

The study outlines how Africa’s regulatory and policy environment must evolve to attract more investment funds to domicile locally—particularly in high-potential markets like Ghana, Rwanda, Nigeria, and Kenya.

“It is time to enhance Africa’s competitiveness and increase capital mobilization through strategic investment vehicle domiciliation,” said Dr. Dorothy Nyambi, President and CEO of MEDA. “Transforming the investment landscape for African-owned and women-led investment vehicles will strengthen MSMEs that generate dignified and sustainable jobs for women and youth across Africa.”

Ghana's Opportunity: Becoming a Regional Investment Hub

The report identifies Ghana as a promising candidate to become a regional investment hub—if it can strengthen its legal, tax, and regulatory environment to support the domiciliation of investment vehicles. This could unlock greater financing for Micro, Small, and Medium-Sized Enterprises (MSMEs), which form the backbone of the Ghanaian economy but remain severely underserved by traditional finance channels.

“MSMEs are often too large to qualify for microfinance and too small to attract bank loans, private equity, or venture capital,” noted Maame Tutua Dadson, Lead Counsel at Stafford Law and contributor to the report. “This is particularly affecting youth and women entrepreneurs who struggle to start and scale high-potential businesses.”

A Three-Year Plan to Reform Investment Policy

The study’s release marks the start of a three-year initiative to push for policy changes across Africa. Ghana is among the focus countries, alongside Ethiopia, Kenya, Nigeria, Rwanda, and WAEMU nations like Côte d’Ivoire and Senegal.

“Our collaborative team will be engaging directly with decision-makers to enhance regulatory and policy environments,” said Diana Smallridge, CEO of Momentus Global and co-author of the report. “The goal is to make African domiciles more attractive and effective in deploying capital—particularly into women-led enterprises and inclusive businesses.”

In parallel, the African Crowdfunding Association will advocate for updates to crowdfunding regulations, allowing for more flexible and accessible capital channels to further expand the continent’s investment landscape.

Ghanaian Financial Leaders Add Their Voice

Kofi Fynn, Managing Director of Ghana-based Petra Trust, added to the discussion by calling for a sustained and coordinated national effort to build Ghana’s investment ecosystem.

“We need a consistent and collaborative approach from all relevant government agencies and financial sector players to position Ghana as a financial hub,” Fynn said during the launch webinar.

Pan-African Momentum Grows

The report is part of a broader initiative supported by the Mastercard Foundation, and led by MEDA in collaboration with global and African investment ecosystem actors such as Momentus Global, Samawati Capital Partners, and Stafford Law.

The research engaged over 170 stakeholders—from fund managers and investors to regulators and legal professionals—across Africa and globally recognized fund domiciliation centers.

Looking Ahead

The study's findings are expected to fuel deeper engagement with Ghana’s Ministry of Finance, Securities and Exchange Commission (SEC), and other regulators in the months ahead, as stakeholders work to create a more enabling environment for capital to be mobilized and retained within Africa.

As Dr. Nyambi concluded, “Local domiciliation of investment funds isn’t just a technical reform—it’s a strategic move to unlock Africa’s economic future.”