Ghana’s Pension Funds Could Unlock Over US$1 Billion for Private Capital Investment – AVCA Report

Ghana’s pension funds could unlock more than US$1 billion for private capital investment, according to a new report by AVCA, the African Private Capital Association, supported by the Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP).

The report, Pension Funds and Private Capital in Ghana, reveals that more than half of Ghanaian pension providers now have exposure to private capital, signalling a move from cautious interest to active participation. About 65% plan to increase allocations to private equity within the next five years, driven by recent policy reforms encouraging investment in alternative assets.

Despite managing GHS 86.4 billion (US$6.2 billion) in assets by the end of 2024, Ghana’s pension industry remains underexposed to private markets. Pension funds currently use just 4.4% of the 25% regulatory limit for alternative investments far below peers such as Nigeria (34%) and South Africa (8%).

The report highlights that Ghanaian pension funds are prioritising investments in healthcare (55%), agribusiness (45%), and technology (40%). By asset class, 38% favour real assets like infrastructure, while 24% target private equity and 19% are exploring venture capital. Many prefer DFI-backed vehicles (28%) and co-investment models (22%) to help mitigate risks.

However, challenges such as currency volatility, complex regulations, limited data transparency, and institutional capacity gaps continue to restrict broader participation. Most pension funds engage with fewer than three fund managers annually, indicating a need for stronger industry collaboration.

Abi Mustapha-Maduakor, Chief Executive Officer of AVCA, said “Ghana’s pension funds are at an inflexion point. The data highlights both the scale of investable domestic capital and the practical barriers that continue to hold it back. Unlocking this potential will require a combination of regulatory clarity, institutional capacity-building, and deeper collaboration between fund managers and local investors. This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders. With these foundations in place, Ghana’s pension system can become a catalyst for long-term, sustainable growth.”

The report concludes that continued regulatory reform, capacity-building, and innovative co-investment models could transform Ghana into a regional leader in pension-led private capital mobilisation, supporting long-term economic growth and sustainable development across West Africa.