Pension industry eyes alternative investments beyond government securities

Ghana’s pension industry is intensifying efforts to diversify long-term savings away from government securities as total assets under management approach GH¢100 billion, although actual investments in private equity, venture capital and other alternative assets remain limited despite expanded regulatory space.

To address this gap, Impact Investing Ghana (IIGh), through its Pensions Industry Collaborative, organised a four-day capacity-building workshop aimed at equipping pension fund managers and trustees with the skills needed to assess and invest in alternative asset classes, including private equity, venture capital and infrastructure.

The initiative comes at a time when Ghana’s pension system has grown rapidly in size but remains heavily concentrated in sovereign debt. Pension assets are projected to reach about GH¢100 billion by the end of 2025, up from GH¢78.2 billion in mid-2024. Historically, up to 75 percent of these assets have been invested in government securities, a concentration that exposed pension funds during the Domestic Debt Exchange Programme.

In response to those vulnerabilities, the National Pensions Regulatory Authority revised its investment guidelines, increasing the allowable allocation to alternative investments from 10 percent to 25 percent. This adjustment potentially frees up as much as GH¢25 billion for non-traditional assets. However, uptake has been slow, largely due to limited technical expertise and governance concerns within pension schemes.

Speaking at the opening of the workshop, Chief Executive Officer of Impact Investing Ghana, Amma Lartey, said unlocking pension capital profitably was a shared national objective, but required deliberate capacity building among industry decision-makers.

“Our aim is to provide a structured curriculum that can be available all year round for the industry,” she said, describing the training as a critical step towards aligning pension capital with inclusive growth and sustainable development.

Ms. Lartey stressed that meaningful movement into private markets would only occur once trustees and fund managers developed a strong technical understanding of alternative investments.

Yaw Osei Tutu, Strategic Partnership Manager at IIGh, noted that mobilising pension capital was vital for long-term economic growth, particularly in sectors that struggle to access long-dated financing. He said institutional investors needed practical tools to channel funds into infrastructure, agriculture and small and medium-sized enterprises.

The workshop, held from November 18 to 21 at Atimpoku-Juapong, brought together 27 pension fund managers and trustees. Sessions focused on private equity and venture capital strategy development, asset allocation under varying risk profiles, portfolio construction and diversification.

Facilitators included Hamdiya Ismaila, Founder and Chief Executive Officer of Savannah Impact Advisory, and Stephen Antwi-Asimeng, an investment banking and private capital specialist with over 30 years of experience. Participants engaged in hands-on case studies simulating real-world investment decisions, including due diligence on private equity funds, drafting investment memoranda and negotiating governance rights.

According to facilitators, the exercises highlighted the depth of analysis required before committing pension assets to illiquid investments. Trustees, in particular, emphasised information rights and governance safeguards, reflecting heightened risk awareness following recent losses on government debt.

The training also coincided with signs of recovery in Africa’s private capital markets. Private equity deal value across the continent is projected to reach about US$900.8 million in 2025, driven by fintech, agriculture and renewable energy. Venture capital activity increased by 11 percent in the first half of the year, with clean technology, artificial intelligence and fintech accounting for nearly two-thirds of deal volume.

Despite these trends, Ghana’s pension funds have yet to play a meaningful role in private markets. Insights from the workshop showed that while understanding of alternative investments is improving, most funds have not fully implemented structured programmes in private equity or venture capital. Participants also noted the need for fund managers to better demonstrate financial performance and measurable impact to build pension fund confidence.

Feedback from the programme indicated significant progress. About 35 percent of participants reported having little prior knowledge of private equity and venture capital, while a majority said they were knowledgeable or extremely knowledgeable after the training. Nearly 90 percent rated the sessions as excellent.

Organisers concluded that sustained and continuous training would be necessary to translate regulatory flexibility into actual capital deployment. Recommendations included extending future programmes to allow deeper engagement on deal structuring, risk management and governance.

For now, Ghana’s pension system stands at a crossroads: a growing pool of long-term capital on one side and an economy in need of patient financing on the other. Industry players say bridging this gap will depend less on regulations and more on building the right skills.