How To Invest Your Money In Ghana

September 8, 2022

Written by Dorcas Obenewaa Owusu


If you’re looking for a safe, smart, and legit way to grow your money, then you’re in luck because that’s what I’m going to talk to you about today. I’m sure most of you will agree that the standard of living in Ghana is getting tougher by the day, so having a Plan B (and maybe C and D) is crucial.

So I’ll be giving you a couple of investment tips that will help you make the most of your hard-earned cash. Do note that the first five points are purely passive income, meaning once you invest, you don’t need to do much to make money. The last point, on the other hand, is active income, which means you have to perform specific tasks to earn money. Ok, now let’s set the ball rolling…

Invest in fixed-income securities

Have you ever heard of fixed-income securities? If not, let me explain with this scenario: Your friend asks you to lend him 5000 cedis. But then he promises to pay the money back in 12 months. You agree to lend him the money on one condition: he will pay you 100 cedis interest every month until the 12 months are up. If he pays back the original amount you lent him, you’d have earned a whopping 2400 cedis! The amount you lent him + the interest he paid.

Fixed-income securities work the same way, but instead of lending your money to a friend, you lend it to the government or a company. 

Each month, you’ll be paid a fixed amount of money until you eventually receive the original amount you invested.

To clarify a few things… in financial terms, the original amount you invested is called the principal

The maturity date is the date you receive your principal and interest. 

And the interest rate is well….the interest you receive on your money (you get the idea). 

Now let’s talk about the types of fixed-income securities 

The most common types are bonds, notes, and treasury bills. But the main difference between these three types is the duration of maturity.

Treasury bills – Treasury bills are issued by the Bank of Ghana on behalf of the government. They have a maturity of between 92 and 182 days. 

Notes – Notes are similar to treasury bills but they have a maturity of one to two years 

Bonds – Bonds are also similar to treasury bills and notes. However, they are longer-term investments with maturities of more than two years. Right now, the 7-year bond is the longest maturity security issued in Ghana

Consider mutual funds.

Investments can be unpredictable sometimes. Therefore, it’s advisable to spread your eggs across different baskets to reduce risks. That is when mutual funds come into play.

When you invest in a mutual fund, your money is pooled with that of many other investors to buy stocks, bonds, or other securities. So you don’t directly buy these securities directly. A middleman collects all the money and invests it on behalf of all the investors who have contributed. This middleman is called a fund manager.

An example of a mutual fund in Ghana is Databank’s MFund. You can also check with your bank for mutual fund packages you can invest in.

Most mutual funds will typically offer you a number of different funds depending on your goals and risk tolerance.

A lot of mutual funds are open ended, which means that they allow you to add to your investment at any time, so you can top up your investment account, say, every month after you have received your salary.

Some  firms that offer mutual funds in Ghana have mobile apps to simplify investing. For instance, Ecobank EDC has the Ecobank Investor App that lets you top up or withdraw your investment through MoMo or debit card. 

Buy shares

Buying shares in a company means you own a small part of that company. Tullow Oil, MTN Ghana, Ashanti Gold Limited, and Access Bank are just a few of the companies in Ghana you can own shares in. If you also prefer global brands, you can get a piece of Apple, Tesla, Microsoft, or Facebook. 

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As the price of your shares increases, you can sell them for a profit to another investor. You may also earn dividends on your investment. Dividends are simply a distribution of the company’s profits to its shareholders.

There are many ways to build wealth with shares, but it’s important that you thoroughly research the companies you want to invest in. 

Start by opening a trading account with a licensed stockbroker. It’s quite simple, but I’ll take you through the process step by step in another post.

The Ghana Stock Exchange website has the complete list of all the Ghanaian companies selling their stock to the public

Also, Asitsala and Cedimanager are two of the apps for buying shares in Ghanaian companies

For international investments, Investsika is an app that Ghanaians can use to buy shares in foreign companies  

Unfortunately, it hasn’t been released to the public at the time of writing. However, you can still use  Accrue and  Bamboo to get your slice of international stocks

Rememeber, picking the right stocks requires some knowledge, skills, and a thick skin

Invest in cryptocurrencies

Cryptocurrencies are the new kid on the block when it comes to investing. These are simply digital coins that work in the same way as physical currency.

You can invest in cryptocurrencies as well for long-term gains. You buy and hold them in a digital wallet before selling them for a profit when the price goes up.

A word of caution here: trading cryptocurrencies is a risky investment, so it’s important to do your research before venturing into it. Don’t get overwhelmed by all the hype or peer pressure. In other words, be prepared to lose some money. So it’s advisable to only invest what you can afford to lose, especially for beginners

Try crowdfarming

If you’re looking to take advantage of opportunities within agriculture to make money without having to deal with the stress and hassle that comes with running your own farm, then crowdfarming is an exciting new opportunity you can explore.

Here’s how it works…. 

Crowdfarming companies will take your money and farm on your behalf. After harvest, the company helps you find buyers for your produce. They take a part of the profits and then give you the rest. 

Other crowdfarming companies work by letting you sponsor farmers in rural areas. After harvest, you get your principal and a share of the profits.

Two popular crowdfarming platforms in Ghana are GrowForMe and Complete Farmer who offer anywhere between 2 to 30% returns on your investment. 

Start your own business

There are many businesses you can start in Ghana with very little or no capital. However, this requires a lot of effort and patience, especially in the initial stages. Some low-cost businesses you can consider are delivery services, dropshipping, catering, Uber/Bolt driving, selling clothes, and fish farming.

What should you invest in?

Depends on your risk tolerance and what your investment goals are. 

EVERY investment carries a level of risk.  Which means there’s always a chance that you’ll lose your money. Some investment opportunities are less riskier than others. For instance fixed income securities and fixed income mutual funds are considered low risk since you’re lending money to the government

While this is not always the case, investments that carry more risk tend to have higher returns than safer investments. 

If your investment goals are far into the future and you don’t need the money now for any short term goals you may be able to take on more risks. 


About Mesika

Hey there, my name is Isaac Sesi. I built Mesika to provide free personal finance resources online to help young Ghanaians become smarter about their money.

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