Ghanaian pension funds prioritise investments in healthcare (55%), agribusiness (45%), and technology (40%), according to a new report from the African Private Capital Association (AVCA). 

Released in collaboration with the Chamber of Corporate Trustees of Ghana and British International Investment (BII) through the Ghana Investment Support Programme (GHISP), and titled Pension Funds and Private Capital in Ghana, the report offers the most comprehensive assessment to date of how pension funds in one of Africa’s fastest-growing pension markets can catalyse long-term investment in productive sectors.

While the pension industry has expanded rapidly—with total assets under management reaching GHS 86.4 billion (US$6.2 billion) by the end of 2024—the report highlights a significant gap between this growth and the sector’s relatively low allocation to private capital. Ghanaian pension funds currently utilise only 4.4% of the 25% limit for alternative investments, lagging behind peers such as Nigeria, which uses 34% of a 5% cap, and South Africa, which allocates around 8% under its 15% ceiling. This reflects a broader continental pattern of underutilisation, where progressive regulatory frameworks and maturing investment ecosystems have yet to translate into substantial capital deployment.

Despite this underexposure, the report underscores a strong appetite among Ghanaian pension funds to shift from passive accumulation toward active, impact-aligned deployment. In addition to their prioritisation of healthcare, agribusiness, and technology, funds show growing interest in real assets such as infrastructure and property (38%), private equity (24%), and venture capital (19%). Many prefer to invest through development finance institution (DFI)-backed vehicles, which 28% of funds favour for their risk-mitigation benefits, while 22% are drawn to co-investment models that enable shared due diligence and offer additional investment protection.

Nevertheless, the path to deeper private market participation is constrained by a range of challenges. Regulatory processes, including complex fund licensing requirements, continue to pose barriers. At the same time, market dynamics—such as a limited pipeline of investable projects—hinder effective capital deployment. These are compounded by structural limitations in data transparency and institutional investment capacity. The report also notes a lack of engagement between pension funds and fund managers, with 89% of funds having interacted with fewer than three managers over the past year.

Encouragingly, there is strong forward momentum: 65% of pension funds surveyed intend to increase their exposure to private equity over the next five years. This is reinforced by a government directive issued in May 2025, which encourages pension funds and insurers to allocate at least 5% of their assets to private equity and venture capital by 2026. The directive marks a pivotal step in mobilising long-term domestic capital in support of national development objectives.

To unlock the full potential of pension-led investment, the report calls for a coordinated focus on four key areas. First, enhancing transparency and fostering better communication between pension funds and investment managers is essential to building trust and understanding. Second, targeted training and pooled investment structures are needed to strengthen institutional capacity. Third, the strategic use of blended finance and co-investment tools can help mitigate risk and attract greater capital flows. Finally, regulatory reforms, including the recognition of Limited Partnerships and a more streamlined licensing process, will be critical to enabling smoother market entry and participation.

Abi Mustapha-Maduakor, Chief Executive Officer of AVCA, commented on the findings, stating: “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 to private capital over the next five years, positioning Ghana as a potential regional leader in pension-led private investment across West Africa. This research is part of AVCA’s wider Knowledge Exchange Initiative (KEI), a year-long capacity-building programme supported by BII through GHISP, aimed at strengthening local institutional participation in Africa’s evolving private capital landscape.