AVCA says Ghana pensions eye $1b private capital
Ghana’s pension sector could mobilize more than 1 billion dollars for private investment opportunities. The African Private Capital Association released findings showing pension assets reached 86.4 billion cedis by late 2024, but allocated just 4.4 percent to alternative investments against a 25 percent regulatory limit. Nigeria uses 34 percent of its 5 percent cap, while South Africa employs 8 percent of its 15 percent ceiling.
The association collaborated with The Chamber of Corporate Trustees of Ghana and British International Investment on the assessment. Two-thirds of surveyed funds intend to expand private equity positions within five years. The government issued a directive in May requiring pension managers and insurers to allocate at least 5 percent of their holdings to private equity and venture capital by 2026.
Healthcare attracts 55 percent of intended investments, followed by agricultural business at 45 percent and technology at 40 percent. Real assets like property and infrastructure account for 38 percent of interest, while private equity accounts for 24 percent and venture capital for 19 percent. Currency fluctuations and complex licensing procedures restrict broader participation.
The association recommends improved data access, staff training programs, blended financing arrangements, and licensing reforms. Chief executive Abi Mustapha-Maduakor said regulatory clarity and institutional development remain essential for progress.
