Ghana’s two sovereign wealth funds—the Ghana Stabilisation Fund and the Ghana Heritage Fund—closed the first half of 2026 with a combined balance of US1.55 billion at the start of the year, bolstered by fresh allocations from crude oil liftings and investment income, despite a significant withdrawal from the Stabilisation Fund.
Total Allocations and Breakdown
During the first half of 2026, the Petroleum Funds received total allocations of US137.99 million) was directed to the Ghana Stabilisation Fund, while the remaining 30% (US27.79 million over the six-month period, reflecting returns on the portfolios managed by the central bank, which are typically invested in low-risk global instruments such as US Treasury bonds and other sovereign securities.
Ghana Stabilisation Fund: Withdrawal and Balance
The Ghana Stabilisation Fund, which is designed to cushion the national budget against short-term revenue shocks from oil price volatility, recorded a withdrawal of US182.68 million. This withdrawal is consistent with the fiscal framework, which allows for drawdowns to support the budget when petroleum receipts fall below projected levels or when the economy faces unexpected pressures. Given the global oil price fluctuations in early 2026—with Brent crude trading between US88 per barrel—the government appears to have utilised a portion of the Stabilisation Fund to bridge revenue gaps while maintaining fiscal discipline.
Ghana Heritage Fund: Steady Accumulation
In contrast, the Ghana Heritage Fund, which is intended to serve as an intergenerational savings vehicle for future generations and to support long-term development, recorded no withdrawals during the period. It ended the first half with a robust balance of US1.4 billion. The Heritage Fund is structured to accumulate over time, with withdrawals permitted only under specific conditions, such as for major national infrastructure projects approved by Parliament. Its steady growth underscores the government’s commitment to preserving a portion of oil wealth for posterity.
Source of Allocations: Five Crude Oil Liftings
The report indicates that the allocations during the first half of 2026 were derived from proceeds from five crude oil liftings. These liftings originated from three of Ghana’s major producing fields: the Jubilee Field, the Sankofa-Gye Nyame Field, and the TEN (Tweneboa, Enyenra, and Ntomme) Field. The Jubilee Field, which began production in 2010, remains the country’s largest producer, while Sankofa-Gye Nyame and TEN have contributed significantly to overall output since their respective start-ups. The number of liftings in a given period varies depending on production levels, shipping schedules, and international market demand. The five liftings in the first half of 2026 represent a healthy cadence, though slightly lower than the six liftings recorded in the same period last year, reflecting a modest dip in production or logistical adjustments.
Historical Context and Legal Framework
The Petroleum Revenue Management Act (Act 815), passed in 2011, was a landmark piece of legislation designed to ensure transparent, accountable, and prudent management of Ghana’s oil revenues. It established the two funds, mandated the publication of quarterly and annual reports, and set clear guidelines for the allocation, investment, and withdrawal of petroleum receipts. The Act also created the Public Interest and Accountability Committee (PIAC) to oversee compliance and engage the public on the use of oil revenues.
Since the commencement of commercial oil production in 2010, Ghana has accumulated substantial petroleum revenues, but the country has also faced challenges, including price crashes, currency depreciation, and fiscal mismanagement. The funds have served as a buffer during difficult times—most notably during the 2014-2016 oil price slump and the 2020 COVID-19 pandemic, when withdrawals from the Stabilisation Fund helped keep the economy afloat.
Performance and Investment Strategy
The net income of US$27.79 million earned during the first half of 2026, though modest relative to the total portfolio, reflects a conservative investment strategy mandated by the Act. The Bank of Ghana, as the custodian, invests the funds primarily in low-risk assets—such as US Treasury bonds, Eurobonds, and other highly-rated sovereign debt—to preserve capital and ensure liquidity. In recent years, the funds have also been partially invested in AAA-rated corporate bonds and short-term money market instruments, yielding moderate returns. The 1.6% return on the combined portfolio over six months is in line with global interest rate trends, as major central banks have maintained elevated rates to combat inflation.
Implications for Fiscal Policy and Development
The combined balance of US182.68 million, provides a buffer against revenue shortfalls in the second half of the year, while the Heritage Fund’s US$1.46 billion serves as a long-term endowment that could fund future infrastructure, education, and healthcare projects. However, critics argue that the Heritage Fund has grown slower than expected due to periodic parliamentary approvals for withdrawals for development purposes, as well as the relatively low return on investments.
In its Mid-Year Budget Review presented on July 23, Finance Minister Dr. Cassiel Ato Forson indicated that the government intends to continue using the Stabilisation Fund judiciously to support the budget, but also plans to increase the Heritage Fund’s allocation in future years to ensure adequate savings for future generations. The Petroleum Funds’ performance will be closely monitored by PIAC and civil society groups, who have called for greater transparency in the management of the funds and for a more aggressive investment strategy that could generate higher returns without compromising safety.
Outlook for the Second Half of 2026
Looking ahead, the second half of 2026 is expected to see additional crude oil liftings, potentially two or three more, depending on production schedules and global demand. However, the outlook is clouded by geopolitical tensions in the Middle East, which could drive oil prices higher or disrupt supply chains. The Bank of Ghana will continue to publish quarterly reports, and the full-year performance will be assessed in the context of global energy markets, domestic fiscal needs, and the broader economic recovery.
For now, the US$1.64 billion in the Petroleum Funds stands as a testament to Ghana’s ability to save a portion of its oil wealth—a legacy that many resource-rich nations have struggled to achieve. The challenge ahead is to ensure that these funds are not only preserved but also wisely utilised to transform the lives of ordinary Ghanaians, from infrastructure development to social investment, while maintaining the discipline required by law. As the country moves towards the December 2026 elections, the performance of these funds will likely feature prominently in debates over economic stewardship and national development priorities.
