Investment Strategy
The Ghana Heritage Fund is Ghana’s intergenerational savings vehicle, established under the Petroleum Revenue Management Act of 2011 following the commencement of commercial oil production from the Jubilee Field. The fund receives a portion of Ghana’s annual petroleum revenues and is designed to preserve and grow wealth for future generations of Ghanaians.
The fund is managed by the Bank of Ghana with investment oversight from an Investment Advisory Committee. The investment strategy has evolved since inception, starting with a conservative allocation to sovereign bonds and money market instruments and gradually expanding to include a broader range of asset classes. The current portfolio includes foreign government bonds, investment-grade corporate bonds, public equities in developed markets, and a growing allocation to alternatives.
The Heritage Fund’s long-duration mandate and restrictions on withdrawals make it well-suited for illiquid investments. The fund has been gradually increasing its allocation to alternatives, including infrastructure and private equity, as the asset base grows and the investment framework matures. Ghana’s relatively transparent petroleum revenue management framework, which includes public reporting and parliamentary oversight, distinguishes it among African oil-producing nations.
How to Approach
International managers should approach the Bank of Ghana’s reserve management division, which oversees the Heritage Fund’s investment activities. The fund’s Investment Advisory Committee evaluates new strategies and asset classes. Managers with African market expertise, infrastructure capabilities, and experience working with central bank-managed sovereign funds will find relevance. The fund’s growing scale and expanding investment mandate create opportunities for managers across fixed income, equities, and alternatives.
Frequently Asked Questions
What is the Ghana Heritage Fund?
The Ghana Heritage Fund was established under the Petroleum Revenue Management Act of 2011 to preserve a portion of Ghana's oil wealth for future generations. It is one of two funds under the Ghana Petroleum Funds framework, alongside the Ghana Stabilisation Fund. The Heritage Fund receives a minimum of 30% of the Annual Budget Funding Amount from petroleum revenues.
How is the Heritage Fund invested?
The Ghana Heritage Fund is managed by the Bank of Ghana with oversight from the Investment Advisory Committee. The fund is invested in a diversified portfolio including foreign sovereign bonds, investment-grade corporate bonds, public equities, and increasingly, alternative investments. The investment policy has been gradually expanded to include a wider range of asset classes.
Can the Heritage Fund be accessed by the government?
The Petroleum Revenue Management Act restricts withdrawals from the Heritage Fund. The principal cannot be drawn upon for at least the first 15 years from the fund's establishment (through 2026), after which withdrawals are limited to a maximum of the accrued returns. This lock-up provision ensures long-term wealth preservation for future Ghanaian generations.
