He revealed that an additional qualifying instrument for the investment of the Ghana Petroleum Funds (GPFs) would be introduced. The move is aimed at ensuring that a portion of the GPFs is invested in the domestic market, particularly in commercially viable energy infrastructure capable of powering the nation’s industrial and economic transformation.
Dr. Forson made the disclosure in Parliament last Friday while presenting the Government’s 2026 Budget and Economic Policy for consideration and approval. The budget carries the theme, “Resetting for Growth, Jobs and Economic Transformation.”
In line with Section 27(2) of the Petroleum Revenue Management Act, 2011 (Act 815), the Investment Advisory Committee had advised the Ministry of Finance to designate additional qualifying instruments for the GPFs. Under the current legal framework, however, investments from the Funds are restricted to low-risk, foreign-denominated securities issued by entities outside Ghana, including the IMF, World Bank, and other top-rated sovereigns. This conservative approach, the Minister noted, has delivered minimal returns.
Since the establishment of the Funds in 2011, total reserves have accumulated to US$1.46 billion, yet only US$94.9 million has been earned—an average return of just one per cent over the past 13 years. “The time has come to make our oil wealth work harder for Ghanaians,” Dr. Forson stressed.
He explained that the designation of additional qualifying instruments would allow part of the Funds to be channelled into commercially viable domestic energy projects. This initiative is expected to diversify the investment portfolio, improve long-term returns, and align the Funds more closely with Ghana’s development and industrialisation priorities.
According to Dr. Forson, the energy sector remains central to Ghana’s transformation agenda, powering industries, homes, and the 24-Hour Economy Programme. Directing a portion of the oil savings into strategic projects, such as thermal plants and gas processing facilities, would not only enhance profitability but also lower energy costs, improve reliability, and strengthen industrial competitiveness.
Describing the initiative as a “win-win” for the nation, the Finance Minister emphasised that the reform would both protect and grow the value of the GPFs while unlocking financing for projects that create jobs, expand local industries, and reinforce energy security.
He also cited global examples, noting that more than a quarter of sovereign wealth funds worldwide now invest directly in infrastructure, innovation, and strategic industries. Notable examples include Saudi Arabia’s Public Investment Fund, Nigeria’s Sovereign Investment Authority, and the UAE’s Mubadala and Masdar Funds, which have driven transformational growth in their respective economies.
Dr. Forson assured Parliament that the policy shift would not impose any cost on the national budget. Instead, it would create fiscal space by improving returns on savings and leveraging domestic capital for high-impact development initiatives.
BY KINGSLEY ASARE