SEC targets diaspora capital to boost Ghana’s capital market and infrastructure development
The Securities and Exchange Commission (SEC) says it is taking steps to unlock billions of dollars in diaspora capital to support Ghana’s capital market, business growth and infrastructure development.
The initiative aims to channel a portion of the country’s growing remittance inflows into long-term investments, creating new opportunities for economic expansion while providing Ghanaians abroad with secure and regulated investment avenues.
The move follows increasing indications that many members of the Ghanaian diaspora are interested in investing in their home country but face challenges accessing credible and structured investment channels.
Speaking on the sidelines of a consultative engagement with broker-dealers and other capital market stakeholders, the SEC’s Deputy Director-General in charge of Finance, Mensah Thompson, revealed that discussions with Ghanaian communities in the United Kingdom and the United States highlighted significant untapped investment potential.
According to him, engagements with Ghana’s ambassadors in both countries exposed a strong desire among Ghanaians abroad to contribute to national development through investment.
Mr. Thompson disclosed that Ghana’s Ambassador to the United Kingdom recounted a meeting with a group of Ghanaian citizens who expressed interest in mobilising funds for major infrastructure projects in Ghana.
He noted that the group pointed to examples from other countries, including Ethiopia, where diaspora communities contributed financially to national infrastructure projects.
According to him, the investors indicated their readiness to commit capital if government identified viable, income-generating projects with clear investment structures and projected returns.
“They said that if the government could identify a feasible infrastructure project with a clear repayment framework and revenue-generating potential, members of the diaspora would be willing to mobilise resources and invest,” he explained.
Mr. Thompson said the experience underscored the vast investment appetite that exists among Ghanaians living abroad.
“There is a lot of interest among the diaspora to invest back home, but many do not have the appropriate channels or mechanisms to do so,” he said.
To address this challenge, the SEC is working closely with broker-dealers and other market intermediaries to develop the necessary tools, products and regulatory frameworks capable of attracting and absorbing diaspora investments.
The initiative forms part of broader efforts to leverage remittance inflows for productive investment purposes.
Mr. Thompson noted that Ghana receives substantial remittance inflows annually and believes a significant portion could be directed into the capital market.
“We have heard the President speak about remittances, and this year alone the country has received about US$8 billion. Even if half of that amount finds its way into the capital market, the impact would be enormous,” he stated.
He added that the SEC remains committed to creating secure and transparent investment channels that will allow diaspora capital to flow into regulated investment opportunities while contributing to the growth and development of Ghana’s capital market and the wider economy.
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