The report noted that despite Ghana’s pension industry assets reaching GHS 86.4 billion (US$6.2 billion equivalent) by the end of 2024, its allocation to alternatives investments remained limited at just 4.4 per cent of its 25 per cent regulatory cap. According to the report, this underutilisation is a wider continental pattern and contrasts sharply with peers like Nigeria who have 34 per cent usage of a 5 per cent cap and South Africa 8 per cent of a 15 per cent ceiling. 

However, the report noted a changing trend stressing that a notable 65 per cent of respondents had plans to increase their allocations to private equity within five years. 

This momentum according to the report is bolstered by the government’s May 2025 directive encouraging pension funds and insurers to allocate at least 5 per cent of assets to private equity and venture capital by 2026. The report said Ghanaian pension funds were prioritising investments in sectors aligned with national development, favouring healthcare 55 per cent, agribusiness 45 per cent and technology 40 per cent. 

In terms of asset class, 38 per cent favour real assets property and infrastructure, 24 per cent private equity, and 19 per cent venture capital. It noted that constraints limiting deeper participation included currency volatility, restrictive investment rules, limited institutional capacity, and regulatory constraints such as complex fund licensing processes. 

To unlock this potential, the report outlined four strategic priorities, including enhancing data transparency, building institutional capacity through targeted training, deploying blended finance and co-investment tools to mitigate risk, and advancing regulatory reforms to streamline fund licensing. 

Mr. Abi Mustapha-Maduakor, CEO of AVCA, stressed that unlocking this potential required a combination of “regulatory clarity, institutional capacity-building, and deeper collaboration”.