A new continental study has spotlighted Ghana as one of Africa’s best-positioned economies to host investment funds locally, a move experts say could unlock billions in capital for small and medium-sized enterprises (SMEs) and drive job creation across the region.
The “Study on Africa as a Jurisdiction for Domiciliation of Investment Vehicles,” released during a pan-African webinar co-hosted by The Maintenance Event Decision Aid (MEDA) and the Africa Impact Investing Group, revealed that nearly 60 percent of Africa-focused investment vehicles (IVs) are registered outside the continent, draining valuable capital from African economies.
The report argues that Africa’s heavy reliance on offshore domiciles, mostly in Europe and the Caribbean means the continent loses potential tax revenue, control over capital flows, and opportunities to develop local financial ecosystems.
“Local domiciliation isn’t just technical reform; it’s key to unlocking Africa’s economic future,” said Dr. Dorothy Nyambi, President and CEO of MEDA. “Keeping investment vehicles on the continent will mobilize more capital, support women-led enterprises, and generate employment for young people.”
Ghana, identified among high-potential markets alongside Rwanda, Nigeria, and Kenya, stands out for its relatively stable economy, strong financial services base, and ongoing reforms in business regulation.
The report calls on Ghana to strengthen its legal and regulatory frameworks to become a regional hub for investment vehicles serving West Africa.
If achieved, such a shift could provide critical financing for micro, small, and medium-sized enterprises (MSMEs), a sector that contributes over 70% of Ghana’s GDP but remains chronically underfunded.
“MSMEs are often too large for microfinance but too small for traditional bank loans or venture capital,” explained Maame Tutua Dadson of Stafford Law. “A local investment ecosystem would bridge that funding gap, especially for youth and women entrepreneurs.”
The report launches a three-year initiative aimed at reforming investment policies across Africa, focusing on countries like Ghana, Ethiopia, Kenya, Nigeria, and Rwanda.
The project, backed by the Mastercard Foundation, seeks to engage directly with policymakers, regulators, and financial institutions to create an enabling environment for capital domiciliation and fund management on the continent.
Diana Smallridge of Momentus Global said the team is already consulting African finance ministries to identify regulatory bottlenecks. “Our goal is to make African domiciles more attractive to investors and to ensure that a larger portion of global capital flows are managed from within the continent,” she said.
For Ghana, local domiciliation of funds could invigorate its capital markets, increase foreign investor confidence, and deepen partnerships between public and private sector players.
Kofi Fynn, CEO of Petra Trust, emphasized the need for “coordinated efforts” among regulators, pension trustees, and fund managers to position Ghana as the preferred destination for fund registration and management.
“This is about building an ecosystem, not just a financial service,” Fynn said. “If Ghana aligns its tax, governance, and regulatory structures, we can capture a larger share of the global investment value chain right here.”
Stakeholders are now calling on Ghana’s Ministry of Finance, the Securities and Exchange Commission (SEC), and Bank of Ghana to accelerate discussions on reforms that will modernize the legal infrastructure governing investment funds.
This includes updating fund management laws, improving investor protection mechanisms, and introducing digital regulatory frameworks to streamline fund registration.
The African Crowdfunding Association also plans to push for updated crowdfunding regulations, which could further expand access to alternative financing for SMEs.
Experts agree that reforming fund domiciliation is more than a regulatory exercise, it’s a matter of economic sovereignty. Localizing Africa’s investment vehicles would allow nations like Ghana to retain profits, create jobs in fund administration, legal services, and accounting, and strengthen transparency in how capital is deployed.
“Africa has the talent and the markets,” Dr. Nyambi concluded. “What’s missing is the structure to keep its wealth home.”
With mounting regional collaboration and strong domestic momentum, Ghana may well be on the verge of transforming from a recipient of investment to a regional base for managing it, turning capital retention into a new frontier for economic growth.
