Ghana’s pension funds hold prospects to unlock over $1b for private capital – Report

A new report by the African Private Capital Association (AVCA) says Ghana’s pension funds hold the prospect?to unlock over $1 billion for private capital investment.??  

The report, titled “Pension Funds and Private Capital in Ghana,” and supported by The Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP), provided a comprehensive assessment of how these funds could drive long-term investment into productive sectors.  

The report noted that despite Ghana’s pension industry assets reaching GH¢86.4 billion ($6.2 billion equivalent) by the end of 2024, its allocation to alternatives investments remained limited at just 4.4 per cent of its 25 per cent?regulatory cap.  

According to the report, this?underutilisation is a wider continental pattern and contrasts sharply with peers like Nigeria who have 34 per cent usage of a 5 per cent?cap?and South Africa 8 per cent?of a 15 per cent?ceiling.??  

However, the report noted a changing trend stressing that a notable 65 per cent of respondents had plans to increase their allocations to private equity within five years.?  

This momentum according to the report?is bolstered by the government’s May 2025 directive encouraging pension funds and insurers to allocate at least 5 per cent of assets to private equity and venture capital by 2026.  

The report said Ghanaian pension funds were prioritising investments in sectors aligned with national development, favouring healthcare 55 per cent, agribusiness 45 per cent and technology 40 per cent.??  

In terms of asset class, 38 per cent?favour real assets property and infrastructure, 24 per cent private equity, and 19 per cent venture capital.?  

It noted that constraints limiting deeper participation included currency volatility, restrictive investment rules, limited institutional capacity, and regulatory constraints such as complex fund licensing processes.  

To unlock this potential, the report outlined four strategic priorities, including enhancing data transparency, building institutional capacity through targeted training, deploying blended finance and co-investment tools to mitigate risk, and advancing regulatory reforms to streamline fund licensing.?  

Mr. Abi Mustapha-Maduakor, CEO of AVCA, stressed that unlocking this potential required a combination of “regulatory clarity, institutional capacity-building, and deeper collaboration”. 

Source: GNA?  

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