Financial Institution Governance Structures in Ghana: A Close Look at the Bank of Ghana’s Petroleum Funds Management System

Introduction

The Bank of Ghana’s management of the country’s petroleum funds has been a subject of interest in recent times. In this article, we take a closer look at the internal management structure of the Ghana Petroleum Funds (GPFs) and explore how it operates under a three-tier governance system.

Governance Structure Overview

According to sources within the Bank of Ghana, the GPFs operate under a three-tier governance system:

1. Fiscal Envelope Review and Management Committee (FERMC)

• Chaired by the Governor of the Bank of Ghana
• Sets the strategic direction for the management of the petroleum funds

2. Ghana Petroleum Funds Investment Committee (GPFIC)

• Provides tactical investment guidance
• Makes key decisions on how to allocate the country’s oil revenue

3. Portfolio Management and Advisory Committee (GPFPMC)

• Implements portfolio decisions made by the GPFIC
• Meets bi-weekly to review market developments, analyze performance, and make recommendations for future investments

Decision-Making Process

The decision-making process in the Bank of Ghana’s petroleum funds management system is transparent, accountable, and efficient. The three-tier system ensures that:

• Strategic decisions are made by the FERMC
• Tactical investment guidance is provided by the GPFIC
• Portfolio decisions are implemented by the GPFPMC

This structure allows for effective oversight and control of the country’s oil revenue, ensuring that it is managed prudently for future generations.

Conclusion

The Bank of Ghana’s internal management structure for the petroleum funds demonstrates a commitment to good governance and prudent financial management. The three-tier system ensures transparency, accountability, and efficiency in decision-making processes, ultimately safeguarding the country’s oil revenue for future generations.