Pension Funds and Private Capital in Ghana Report
This report examines how Ghana’s pension funds can evolve from passive capital holders into active participants in Africa’s private capital ecosystem.
As the industry matures, the imperative is no longer whether to diversify, but how swiftly and effectively pension assets can be deployed into alternative investments.
For questions or comments on this publication, please contact research@avca.africa.
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Download the ReportKey findings:
Ghana’s pension industry has exhibited strong growth, tripling in size over the last 5 years. Despite this momentum and increasing interest in private capital, conservative allocations and barriers to pension fund participation remain.
- GHS86.4bn (US$5.9bn) of total pension assets in 2024, positioning them as a major source of long-term domestic capital.
- Private pension exposure to alternative investments remained low at just 1.1% of AUM, but has progressed from 0.03% in 2020.
- Of that, only 0.5% of AUM was allocated to private capital asset classes, including private equity, venture capital, real estate, infrastructure, and private debt.
- Momentum is building: 57% of funds have some private capital exposure, and a further 33% are seeking to make their first allocation.
- If fully utilised, the 25% permissible allocation could unlock over US$1bn for private capital investment.
- Despite recent regulatory reforms that have improved pension fund sentiment toward private capital, four key barriers continue to constrain deeper engagement:
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Market Barriers: currency risk, data opacity
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Regulatory Barriers: lack of suitable fund structures, complex licensing processes
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Structural Barriers: internal scrutiny and capacity gaps
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Manager-related Barriers: limited engagement, unclear exit strategies
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The outlook is cautiously optimistic: while pension funds’ engagement with private capital is nascent, most plan to increase exposure in the next 5 years.
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This report presents four pillars to increase pension fund allocations. If implemented, these stand to transform Ghana into a regional private capital hub.
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💡 NEW AVCA Research: Pension Funds and Private Capital in Ghana
Ghana’s pension industry has exhibited strong growth, tripling in size over the last 5 years. Despite this momentum and increasing interest in private capital, conservative allocations and barriers to pension fund participation remain.
Key insights:
📈 GHS86.4bn (US$5.9bn) of total pension assets in 2024, positioning them as a major source of long-term domestic capital.
🌊Private capital exposure remains low (1.1%), yet full utilisation could unlock US$1bn for investment.
🔓 57% of funds now have some private capital exposure; 33% are seeking their first allocation.
🔒 Despite recent regulatory reforms improving pension fund sentiment toward private capital, key barriers continue to constrain deeper engagement, including persistent currency volatility and regulatory complexity.
🌱Top sectors: Healthcare, Agribusiness, and Technology.
With full mobilisation, Ghana’s pension industry could become a regional private capital hub - fueling enterprise growth and sustainable national development.
📄 Read the full report: https://bit.ly/476WzAo
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