- 65% of Ghanaian pension funds plan to boost private equity exposure
- New AVCA report calls for reforms to unlock long-term domestic capital
ACCRA, GHANA – Ghana’s pension funds could release over $1 billion into private capital markets within five years if recent policy reforms and investment shifts are sustained, according to a new report.
The report, Pension Funds and Private Capital in Ghana, conducted by the African Private Capital Association (AVCA) highlights growing momentum among pension providers who are moving from “cautious interest to active participation” in private capital.
It found that more than half of Ghana’s pension schemes now hold exposure to private assets, while 65% plan to increase their allocations to private equity by 2030.
Untapped potential in Africa’s rising pension market
Despite total pension assets reaching GHS86.4 billion ($6.2 billion) by the end of 2024, Ghana lags behind regional peers in allocating funds to alternatives, using just 4.4% of its 25% regulatory limit. In comparison, Nigeria utilises 34% of a 5% cap, while South Africa allocates about 8% under its 15% ceiling .
The report, supported by the Chamber of Corporate Trustees of Ghana and British International Investment through the Ghana Investment Support Programme (GHISP), identifies four persistent barriers limiting growth: regulatory hurdles, shallow investment pipelines, weak institutional capacity, and limited fund manager engagement. Nearly 89% of pension funds interacted with fewer than three fund managers in the past year.
“Ghana’s pension funds are at an inflexion point,” said Abi Mustapha-Maduakor, Chief Executive Officer of AVCA. “Unlocking this potential will require a combination of regulatory clarity, institutional capacity-building, and deeper collaboration between fund managers and local investors.”
Mustapha-Maduakor added that Ghana’s pension system “can become a catalyst for long-term, sustainable growth” if stakeholders align policies with national development goals.
Policy support and investment priorities
Momentum is building following a May 2025 government directive requiring pension funds and insurers to allocate at least 5% of assets to private equity and venture capital by 2026.
According to AVCA, Ghanaian pension funds are prioritising impact-driven sectors — healthcare (55%), agribusiness (45%), and technology (40%) — while 38% prefer real assets such as property and infrastructure. Another 24% favour private equity and 19% are exploring venture capital.
The report calls for four strategic reforms: improving data transparency, building institutional capacity, deploying blended finance to mitigate risk, and recognising Limited Partnerships to streamline fund licensing .
These measures, AVCA said, would enable Ghana to emerge as a leader in pension-led private capital mobilisation across West Africa. The research forms part of AVCA’s Knowledge Exchange Initiative (KEI), a 12-month capacity-building programme supported by BII through GHISP.
“This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders,” Mustapha-Maduakor said.
