A new report by the African Private Capital Association (AVCA) has revealed that 65% of Ghanaian pension funds plan to increase their investments in private equity over the next five years, signaling a major transformation in how institutional investors are deploying capital in one of Africa’s fastest-growing pension markets.
The report, titled “Pension Funds and Private Capital in Ghana,” was produced in collaboration with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) under the Ghana Investment Support Programme (GHISP). It provides the most detailed analysis yet of how Ghana’s domestic pension assets can be leveraged to drive long-term investment in key sectors such as infrastructure, healthcare, technology, and renewable energy.
According to AVCA, this growing appetite for private equity reflects a broader shift toward alternative asset classes as fund managers seek higher returns and diversification beyond traditional instruments like government securities and listed equities. The report also highlights the potential for Ghana’s pension industry—valued at over GH₵45 billion—to play a more active role in national economic development.
This momentum aligns with the Ghanaian government’s directive issued in May 2025, which mandates pension funds and insurance firms to allocate at least 5% of their total assets to private equity and venture capital by 2026. The policy is designed to unlock domestic capital flows and strengthen local investment ecosystems, reducing dependence on foreign funding.
Industry experts have welcomed the development, describing it as a “turning point” for Ghana’s investment landscape. They note that with improved governance structures and regulatory frameworks, the country’s pension funds are well-positioned to catalyze sustainable growth and support innovative enterprises that contribute to job creation and economic resilience.
