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Ghana’s total pension assets have grown strongly over the last 5 years, reaching GHS 86.4 billion (US$5.9 billion) in 2024, and representing a major source of long-term domestic capital.
In 2024, private pension exposure to alternative investments remained low at 1.1% of AUM yet progressing from 0.03% in 2020.
Of that, only 0.5% of AUM was allocated to private capital asset classes, including private equity, venture capital, real estate, infrastructure, and private debt.
AVCA – the African Private Capital Association, powered by British International Investment through the Ghana Investment Support Programme (GHISP) and The Chamber of Corporate Trustees of Ghana, has released the Pension Funds and Private Capital in Ghana report. The study provides the most comprehensive assessment to date of how Ghanaian pension funds can drive long-term investment into productive sectors in one of Africa’s fastest-growing pension markets.
The report highlights the rapid growth of Ghana’s pension industry and the concentration of pension asset allocations to date. With total pension assets under management (AUM) doubling in size over the last 5 years and reaching GHS 86.4 billion (US$5.9 billion) by end-2024, the industry has grown into a key pillar for long-term domestic savings.
Despite this momentum, Ghanaian pension assets’ exposure to alternatives remains limited and lags behind regional peers. As of 2024, only 1.1% of total private pension AUM, equivalent to US$50 million (GHS0.7 billion) were allocated to alternatives, marking a modest rise from just 0.03% in 2020. Of this, a mere 0.5% of AUM was directed toward private capital asset classes, including private equity, venture capital, real estate, infrastructure, and private debt. This represents just 4.4% utilisation of Ghana’s 25% regulatory ceiling for alternatives. If fully utilised, Ghana’s pension funds could unlock over US$1 billion for private capital investment.
In contrast, Kenya and South Africa have achieved higher utilisation rates of 7.0% and 4.7%, respectively, despite operating under lower regulatory caps of 10% and 15%. This pattern reflects a broader continental trend of underutilisation, where progressive regulations and maturing investment ecosystems have yet to translate into meaningful pension fund allocations. This gap highlights a significant opportunity for Ghanaian pension assets to be channelled into productive investments that support private sector growth and reduce reliance on short-term securities.
Adopting capital allocation strategies aligned with impact and national development priorities, the report notes that Ghanaian pension funds prioritise investments in healthcare (55%), agribusiness (45%), and technology (40%). By asset class, 38% favour real assets such as property and infrastructure, 24% prefer private equity, and 19% are exploring venture capital, signalling a shift from passive accumulation to active deployment.
While recent regulatory reforms and updated investment directives have contributed to a more favourable outlook among pension funds toward private capital, some barriers still temper deeper engagement. These include ongoing regulatory hurdles such as complex fund licensing procedures; market limitations, including data opacity; structural challenges around internal scrutiny and capacity gaps; and Manager-related constraints such as limited engagement with pension funds and unclear exit strategies.
Yet, despite these enduring challenges, there are signs of growing appetite and policy support for increased pension fund participation in private capital. Within the next 5 years, 65% of respondents plan to increase their exposure to private equity, while 52% intend to do so for venture capital. This momentum is supported by the government’s May 2025 directive encouraging pension funds and insurers to allocate at least 5% of assets to private equity and venture capital by 2026, signalling a crucial step toward mobilising long-term domestic capital for development.
The report outlines four strategic priorities to deepen pension participation in private markets:
Enhancing data transparency and engagement between funds and managers
Building institutional capacity through targeted training and pooled investment structures
Deploying capital guarantees and co-investment tools to mitigate risk
Advancing regulatory reforms to recognise Limited Partnerships and streamline fund licensing.
Commenting on the findings, Abi Mustapha-Maduakor, Chief Executive Officer of AVCA, said, “Ghana’s pension funds are at an inflexion point. The data highlights both the scale of investable domestic capital and the practical barriers that continue to hold it back. Unlocking this potential will require a combination of regulatory clarity, institutional capacity-building, and deeper collaboration between fund managers and local investors. This mirrors a broader shift across Africa, where governments are enacting policies to channel domestic savings into productive investments at home and across borders. With these foundations in place, Ghana’s pension system can become a catalyst for long-term, sustainable growth.”
The report projects a steady increase in allocations over the next five years, positioning Ghana as a potential leader in pension-led private capital mobilisation across West Africa. The research forms part of AVCA’s broader Knowledge Exchange Initiative (KEI), a twelve-month capacity-building programme launched with BII support through GHISP, to strengthen local institutional participation in private markets.
For more information and to download the report, please click here.
