Ghana’s Securities and Exchange Commission (SEC) is tightening its oversight of foreign investment funds following the introduction of new licensing guidelines, with no new licences granted under the framework nearly a month after its launch and some unlicensed investment operations already shut down.

The guidelines, issued on September 28, 2026, establish a regulatory framework for the registration, marketing and distribution of foreign funds in Ghana. While international asset managers, cross-border private equity firms and regional wealth managers have reportedly initiated preliminary engagements with the regulator, none has completed the licensing process.

The application procedure requires foreign fund managers to meet several corporate, capital and investment requirements before approval can be granted.

Applicants must first incorporate a Ghanaian subsidiary through the Office of the Registrar of Companies. They must then satisfy minimum foreign equity capital requirements prescribed by the Ghana Investment Promotion Centre (GIPC), with the capital introduced through the banking system.

They must also comply with the SEC’s Foreign Asset Directive, which requires fund managers with offshore exposure to retain at least 30 percent of their assets in Ghanaian investments.

The new framework follows broader regulatory measures introduced earlier in 2026 to limit capital outflows and strengthen domestic investment. Locally licensed fund managers are restricted to a maximum of 20 percent foreign asset exposure, while managers previously authorised to invest entirely offshore must now retain 30 percent of their assets locally.

Enforcement against unlicensed operators

Even as the regulator processes expressions of interest from prospective foreign fund operators, it has intensified enforcement against entities undertaking unauthorised investment activities.

Among the most prominent cases are Chy Century Heng Yue Group Limited and Sairui E-commerce Ghana Limited, which operated under the online retail platform GHY Mall, formerly Sairui Mall.

The SEC has stated that neither company was licensed to conduct capital market activities, including investing or trading funds for returns.

Their activities were curtailed under Sections 3 and 208(c) of the Securities Industry Act, 2016 (Act 929), which require persons and fund managers undertaking regulated capital market activities to obtain the appropriate licence.

The companies promoted a business model described as “New Retail”, requiring users to purchase virtual storefront packages ranging from GH¢770 to GH¢9,240.

Participants who purchased the packages could buy goods at discounted wholesale prices through the platform, which promised to resell the products at retail prices on their behalf.

The companies reportedly promised to return participants’ initial capital within 10 to 12 days, together with guaranteed profits of approximately five per cent. Users were encouraged to reinvest their funds in successive trading cycles, while existing participants received commissions for recruiting new members.

Investor funds remain at risk

Although the businesses presented themselves as e-commerce operators, investigations by the Economic and Organised Crime Office (EOCO) and the SEC reportedly found that their operations involved unlicensed investment activities and collective investment arrangements.

According to the account, EOCO’s forensic analysis indicated that funds from newer participants were used to pay the purported trading profits of earlier participants, raising concerns about the sustainability of the business model.

The GIPC also initiated separate investigations after finding that Chy Century Heng Yue was operating outside its registered corporate objects, while Sairui E-commerce had not registered with the Centre.

Following enforcement actions and public warnings by the SEC, Bank of Ghana and EOCO, the platforms collapsed, leaving local investors unable to recover funds locked in the schemes.

The new foreign funds guidelines are intended to establish a formal compliance pathway for foreign investment operators while strengthening regulatory oversight.

The SEC continues to urge investors to verify the licensing status of local and foreign fund managers through official channels before committing money to investment schemes.