Ghana: Ponzi Scheme Concerns in Ghana

Ponzi schemes are becoming a big worry for Ghana’s financial sector. Ghanaians are on high alert after a Russian-backed Ponzi scheme which was banned in Nigeria is emerging in their country promising huge profits.

Ghana’s financial sector is currently struggling to recover from a major financial crisis involving Ponzi investment schemes. Millions of Ghanaians have been denied access to their savings after investing in microfinance companies. They had been promised huge returns on their capital over a short period of time, but now they’re pleading with Ghanaian President John Mahama for a refund of their investments.

“Many people are dead and many are on their sick bed because of this money [scandal]. It’s not easy for us, Mr. President. Pay our money to us, because the Bank of Ghana is under you,” said businessman Haruna Seidu.

These schemes were at the center of the presidential election campaign in Ghana. The incoming New Patriotic Party government has promised to reimburse all who have lost money with these investments. Ghana’s central bank has also revised its rules to discourage such Ponzi schemes in future. Its deputy governor Johnson Asiamah said they were also receiving help from Germany on how to better protect small investors.

“With the passage of the Ghana deposit protection bill, I am happy to inform you that the Bank of Ghana in collaboration with the German government will soon establish a deposit protection system in Ghana for the first time in our history. This will ensure protection for small depositors and enhance the safety of the financial system,” said Asiamah.