Ghana’s Heritage Fund: Safeguarding tomorrow or seizing today?

Ghanaians have long grappled with the blessings and burdens of natural resources. Since oil started flowing from the Jubilee Field back in 2010, the country has tried to strike a balance between spending now and saving for later.

At the heart of this effort is the Ghana Heritage Fund (GHF), a sovereign wealth fund set up to ensure that future generations aren’t left high and dry when the wells run out. But as 2026 looms, the year the fund’s 15-year no-touch rule expires, debates are heating up. When exactly does it ‘mature’?

Should we dip into it for riskier investments to chase bigger returns? What is the backstory on past attempts to access it, and why did they flop? And is next year really the moment to start unlocking its potential? Let us unpack this, layer by layer, because the stakes could not be higher for a nation still finding its feet in the oil game.

THE BIRTH OF A SAFETY NET: HOW IT ALL BEGAN

Picture this: It is 2011, Ghana is just a year into commercial oil production, and lawmakers are keen to avoid the pitfalls that have tripped up other resource-rich countries – think Nigeria’s boom-and-bust cycles or Venezuela’s cautionary tale. So, they passed the Petroleum Revenue Management Act (Act 815), creating the GHF as part of the broader Ghana Petroleum Funds.

The idea? Squirrel away at least 9% of annual petroleum revenues into this endowment, invested conservatively overseas to grow steadily and support development once the oil taps turn off.

It is paired with the Ghana Stabilisation Fund, which handles short-term shocks, but the GHF is the long-game player – a promise to children not yet born. Managed by the Bank of Ghana, the fund’s portfolio sticks to safe bets like bonds and equities, racking up modest but reliable gains. By mid-2025, its value had climbed to around US$1.26 billion, part of a combined petroleum fund pot of about US$1.42 billion.

 

That’s no small change, especially when you consider it’s grown from scratch without a single withdrawal. But here’s the rub: the Act slapped a 15-year moratorium on touching it, starting from 2011. That means 2026 is the magic year when Parliament could, in theory, greenlight using some of the interest or even principal, but only if it aligns with that core mission of intergenerational fairness.

MATURITY IN 2026: MORE THAN JUST A DATE

So, what does ‘maturity’ really mean here? It is not like a bond paying out on a fixed date; it is more of a checkpoint. Come 2026, the lock comes off, and lawmakers can debate resolutions to deploy parts of the fund.

But the Act is clear: this should happen when petroleum reserves are depleted or in truly exceptional cases. We are talking about a fund that is supposed to outlast the oil era, not fund today’s fixes. By 2026, projections suggest the total petroleum funds could hit US$1.46 billion, with the GHF making up a chunky portion.

It is a tempting nest egg, especially as Ghana pushes for economic recovery amid global uncertainties. Yet, 2026 is not just any year – it is a test of maturity for the nation itself. With the budget statement already stirring pots, it could mark a shift from pure saving to strategic spending. But rush it, and you risk the ‘resource curse’ all over again.Ghana travel guide

PAST PUSHES AND PUBLIC PUSHBACK: A HISTORY OF TEMPTATION

Ghana is not short on crises that have tempted politicians to eye the GHF. Back in 2014, amid economic woes, some voices in government suggested using it for immediate relief, but the Minority in Parliament shot it down, calling it unreasonable and a betrayal of future generations.

They argued it would set a dangerous precedent, turning a legacy fund into a quick-fix ATM. Fast forward to 2017, and similar calls emerged during fiscal squeezes. Officials suggested tapping it to ease current pains, but civil society and the public baulked, reminding everyone of the Act’s intent: save for when the oil’s gone.

Why the resistance? Trust issues, mostly. Ghanaians have seen too many scandals in resource management, and there is a deep-seated fear that once you crack it open, the fund could be politicised or mismanaged. The big one came in 2020 with COVID-19 ravaging the economy. Finance Minister Ken Ofori-Atta broached the idea in Parliament, framing it as a discussion point for budget gaps. But groups like the Centre for Public Interest Law joined the chorus against it, and the Minority held firm, insisting the Heritage Fund was off-limits for pandemics or not.

 

Public opinion, shaped by awareness drives from outfits like the Natural Resource Governance Institute, leaned heavily towards preservation – why rob Peter to pay Paul when Peter’s grandkids might need it more? Lately, in the 2026 Budget, the government is proposing amendments to the Act to redirect chunks towards power sector upgrades.

Majority Leader Mahama Ayariga is defending it tooth and nail, saying investments in energy could yield far better returns than letting it sit in low-yield assets abroad.

But critics like former Suame MP Osei Kyei-Mensah-Bonsu are crying foul, accusing the move of ‘plundering’ national savings and urging a united front to block it. Parliament has even approved a review of how the funds are invested, signalling change is in the air.

The pattern? Urgency meets caution. Proponents see opportunity; opponents see slippery slopes. And the public? They’re the ultimate brake, wary of short-termism in a country where debt is already a heavy load.

HIGH-RISK, HIGH-REWARD: THE INVESTMENT DILEMMA

Now, the million-dollar question or rather, the billion-dollar one: Should we shift some of the GHF into higher-return investments? Right now, it is all about stability, with returns hovering around the low single digits. But with total reserves at US$1.46 billion yielding just US$194.9 million in interest so far, some argue it is underperforming. Why not allocate, say, 20-30% to domestic projects like renewables or infrastructure?

The government’s power sector pitch claims it could supercharge growth, creating jobs and bolstering the grid. Sounds appealing, right? But it is not without pitfalls. Higher returns mean higher risks – think market crashes, corruption scandals, or botched projects eating into the principal.

Critics point out that the fund is meant for post-oil support, not speculative plays. Plus, in a place like Ghana, where governance hiccups are not unheard of, transparency would need to be ironclad. Maybe start small, with interest only, and build from there?Ghana travel guide

2026: READY OR RECKLESS?

As we stare down 2026 from the tail end of 2025, the timing feels both right and fraught. Ghana’s economy is showing signs of resilience. Growth projections are steady, and investor confidence is ticking up. On one hand, strategic investments could turbo-boost development, turning the fund from a dormant asset into a catalyst for today and tomorrow.

 

On the other hand, with oil reserves finite and global energy shifts afoot, dipping in too soon might leave future Ghanaians short-changed. What is needed is dialogue – real, inclusive talks involving civil society, experts, and everyday folks. Amend the Act if must, but with safeguards. Ghana has got a shot at rewriting the resource narrative; let us not squander it.

After all, heritage is not just about saving money; it is about building a legacy that lasts.