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FAQ 1
Sovereign Wealth Fund (SWF) are “State-owned investment fund or entities that are commonly established from balance of payments (BOPs) surpluses, government transfer payments, fiscal surpluses and/or receipts resulting from resource exports. This excludes, among other things, foreign currency reserve assets held by monetary authorities for the traditional BOPs or monetary purposes, state-owned enterprises in the traditional sense, government –employee pension fund or assets for the benefit of individuals.”1
Yes, Ghana has two Sovereign Wealth Funds.
Ghana Heritage Fund (GHF) and Ghana Stabilisation Fund (GSF) which are collectively known as the Ghana Petroleum Funds (GPFs)
It was established to provide a framework for the collection, allocation and management of Petroleum revenue in a responsible, transparent, accountable and sustainable manner for the benefit of the citizens of Ghana, both now and future generations.
The Petroleum Holding Fund is a transient account at the Bank of Ghana to receive and disburse petroleum revenue due the Republic.
Petroleum revenue shall be deposited in the Petroleum Holding Fund for subsequent transfers in accordance with the provisions to the Petroleum Revenue Management Act (PRMA) Act 815 and 893 as amended.
The Government of Ghana owns the Ghana Petroleum Funds.
The objective of the Ghana Stabilisation Fund is to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls.
The objective of the Ghana Heritage Fund is to provide an endowment to support the development for future generations when the petroleum reserves are depleted.
The Ghana Petroleum Wealth Fund is to receive the balances on both the Ghana Stabilisation Fund and the Ghana Heritage Fund within one year when the petroleum resources are depleted.
FAQ 2
All Ghanaians, both present and future generations’ benefit from the Ghana Petroleum Funds.
The Petroleum Revenue Management Act (2015), Act 893 as amended regulates the Ghana Petroleum Funds.
The Petroleum Revenue Management Act 2011, Act 815 was passed by Parliament and assented to by the President on 11th April 2011.
Yes, the PRMA was amended by the Petroleum Revenue Management Amendment Act 2015, Act 893
Kuwait Investment Authority (KIA), The Norwegian Government Pension Fund Global (NPFG), Nigerian Sovereign Investment Authority (NSIA), Timor-Leste Petroleum Fund (TLPF) and Heritage and Stabilisation Fund (HSF) of Trinidad & Tobago.
The Norwegian Government Pension Fund Global is currently the biggest Sovereign Wealth Fund in the world
The Bank of Ghana manages the Ghana Petroleum Funds in line with the PRMA and the 1992 constitution of the Republic of Ghana.
The sources of funds for the Petroleum Holding Fund are all revenues accruing to the State from oil and gas production activities including; surface rentals, corporate income tax, capital gains tax, carried and participating interests, dividends, royalties from oil and gas, additional oil entitlements, production and signature bonuses.
The funds are disbursed by written instructions from the Ministry of Finance through the Controller & Accountant General and in line with Sections 16 and 20 of the PRMA.
Funds are disbursed to the Ghana Stabilisation Fund (GSF), the Ghana Heritage Fund (GHF), Ghana National Petroleum Corporation (GNPC) and Annual Budget Funding Amount (ABFA).
FAQ 3
Yes, the Public Interest and Accountability Committee (PIAC) is an independent statutory body mandated to promote transparency and accountability in the management of petroleum revenues in Ghana.
Members are appointed by the Minister for Finance. Their mandate is to (a) monitor and evaluate compliance with the PRMA by government and other relevant institutions in the management and use of the petroleum revenues and investments ,(b) to provide space and platform for the public to debate whether spending prospects and management and use of revenues conform to development priorities as provided in the PRMA and also (c) to provide independent assessments on the management of petroleum revenues to assist Parliament and the executive in the oversight and performance of related functions respectively.
The Ghana Petroleum Funds are managed by the Bank of Ghana.
Yes, the Investment Advisory Committee (IAC) has the role of advising the Minister of Finance on the management of the Ghana Petroleum Funds.
The IAC comprises seven members with at least two women. Members of the IAC should be persons with proven competence in finance, investment, economics, business management or law or similar disciplines. Members are nominated by the Minister responsible for Finance in consultation with the Governor of the Bank of Ghana and appointed by the President.
The Ghana Petroleum Funds are invested in fixed income asset class in accordance with the qualifying instrument provision of the PRMA.
Yes, there are plans for the Ghana Petroleum Funds to diversify into other asset classes and stakeholder consultations are ongoing.
Yes, the Ghana Petroleum Funds are audited both internally and externally
The Bank of Ghana’s Internal Audit Department undertakes the internal audit and External Auditors appointed by the Auditor General performs the external audit of the Ghana Petroleum Funds.
The Ghana Petroleum Funds are audited quarterly by the Bank of Ghana’s internal auditors and annually by the external auditors.