Ghanaian Pension Funds Turn to Private Equity for Growth as Market Reforms Unlock New Opportunities
Ghana’s pension industry is undergoing a major transformation as more fund managers turn their attention toward private equity to drive long-term growth. A new report by the African Private Capital Association (AVCA) reveals that 65% of Ghanaian pension funds plan to increase their exposure to private equity over the next five years. This signals a major shift in the country’s investment strategy and highlights growing confidence in alternative asset classes as a tool for sustainable economic development.
The Pension Funds and Private Capital in Ghana report—produced in collaboration with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP)—provides the most detailed analysis yet of how pension assets can be mobilized for national growth. Backing this momentum, the Ghanaian government’s May 2025 directive mandates pension funds and insurers to allocate at least 5% of their portfolios to private equity and venture capital by 2026, a policy designed to unlock domestic capital and stimulate private-sector expansion.
Despite total pension assets under management reaching GHS 86.4 billion (about US$6.2 billion) at the end of 2024, Ghana has so far utilized just 4.4% of its 25% regulatory limit for alternative investments. This is significantly lower than Nigeria’s 34% usage of a 5% cap and South Africa’s 8% allocation under a 15% ceiling. “This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments,” said AVCA CEO Abi Mustapha-Maduakor, who emphasized that Ghana’s pension sector could soon become a catalyst for sustainable growth.
The AVCA report identifies healthcare, agribusiness, and technology as the top sectors of interest for pension fund investment, with a growing appetite for real assets such as property and infrastructure. However, the study also points to challenges including regulatory bottlenecks, limited investable projects, and data transparency issues. Notably, 89% of pension funds have engaged with fewer than three fund managers in the past year, reflecting a need for stronger institutional capacity and broader market collaboration.
To address these gaps, the report recommends enhancing data transparency, streamlining regulatory processes, and promoting co-investment and blended finance models to mitigate risks. Mustapha-Maduakor noted that “Ghana’s pension funds are at an inflection point,” calling for continued cooperation between fund managers and policymakers. With inflation now at its lowest level since 2021 and new investment reforms taking hold, Ghana is poised to become a regional leader in pension-led private capital mobilisation across West Africa.
source: nairametrics