Ghana’s pension funds could inject more than $1 billion into the country’s private capital market, bolstering one of West Africa’s most dynamic pension systems.
This was revealed in a new report by the African Private Capital Association (AVCA), developed in partnership with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) under the Ghana Investment Support Programme (GHISP).
The report discloses a steep increase in pension funds’ appetite for alternative investments. More than half of Ghanaian pension providers now hold exposure to private capital, and 65% say they intend to raise allocations to private equity within the next five years.
By the end of 2024, total pension assets under management in Ghana reached GHS 86.4 billion ($6.2 billion), yet only 4.4% of the 25% limit set by regulators is being channelled into alternatives such as private equity and venture capital.
This figure lags far behind Nigeria’s 34% utilisation of a 5% cap and South Africa’s 8% allocation under its 15% ceiling.
Despite this underutilisation, the report says that Ghana’s pension funds are gradually shifting from conservative savings strategies to more productive, growth-oriented investments.
Many are targeting healthcare (55%), agribusiness (45%), and technology (40%), while by asset class, 38% favour property and infrastructure, 24% prefer private equity, and 19% are exploring venture capital.
However, AVCA’s findings also expose major obstacles preventing deeper engagement with private markets. Pension providers identified currency volatility, complex fund licensing processes, limited investable pipelines, and weak institutional capacity as key challenges.
Nearly nine in ten pension funds (89%) interacted with fewer than three fund managers in the past year, underlining the limited depth of Ghana’s investment ecosystem.
The government’s May 2025 directive, which encourages pension funds and insurers to allocate at least 5% of assets to private equity and venture capital by 2026, has provided much-needed policy backing. This move is expected to mobilise domestic capital and drive growth across productive sectors.
To speed up progress, AVCA’s report outlines four key strategies:
- Enhancing data transparency and engagement between funds and managers
- Building institutional capacity through targeted training and pooled investment structures
- Deploying blended finance and co-investment tools to mitigate risk
- Advancing regulatory reforms to recognise Limited Partnerships and streamline fund licensing.
Commenting on the report, Abi Mustapha-Maduakor, chief executive officer of AVCA, stated:
“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.”
AVCA projects that Ghana could become a leader in pension-led private capital mobilisation in West Africa within five years if this momentum is sustained. The report forms part of AVCA’s Knowledge Exchange Initiative (KEI), a year-long capacity-building initiative launched in partnership with BII to enhance local institutional participation in private markets.
If Ghana’s pension reforms and fund managers align effectively, the country could bring in billions of local investment, turning its pension base into a new engine for national development.
