THE Deputy Chief Executive Officer (CEO) of the National Pensions Regulatory Authority (NPRA), Victor Azuma Mejida, has stressed the need for increased diversification of pension fund investments beyond government securities.
He said pension assets had grown significantly over the years but remained heavily concentrated in sovereign instruments which exposed the industry to risks and limited its contribution to productive sectors of the economy.
He said the Authority was supporting initiatives to expand investment options to include private credit and structured finance, which could offer stable long-term returns and address the financing gap faced by small and medium-sized enterprises (SMEs), which continue to struggle to access affordable long-term capital for expansion.
“A large proportion of pension funds remains invested in government securities, exposing portfolios to concentration risk. We are working to create an enabling environment for pension funds to explore alternative investment opportunities in a prudent and regulated manner,” Mr Mejida said.
Stakeholder engagement
He was speaking at a stakeholder reception organised in Accra by the Growth Investment Partners (GIP), an investment platform established by British International Investment (BII), to bridge the financing gap between traditional bank lending and private equity.
The event, which brought together investors, regulators, business leaders and development partners, underscored GIP’s role in mobilising both domestic and international capital, with the inclusion of local pension funds in its shareholder base to expand long-term support for Ghanaian enterprises.
It saw GIP welcome Norfund and Axis Pension Trustees as new investors, adding a $20 million commitment to strengthen GIP’s capital base, reflecting growing confidence in its model of deploying flexible, local currency capital to high-potential Ghanaian businesses.
Alternative investments
He emphasised that increased pension participation in alternative investments would not only improve portfolio diversification but also support job creation and industrial growth.
He added that regulatory reforms were being strengthened to ensure strong governance, risk management and investor protection.
Therefore, he urged collaboration between regulators, fund managers and investors to build a resilient investment ecosystem that balanced returns with economic development objectives.
The Head of Investment Management, Securities and Exchange Commission (SEC), Anthony Degbato, reiterated the need for patient capital and other support systems for SMEs to grow, noting that SMEs held great potential for economic transformation.
“With patient capital, technical support, and strong governance, SMEs can drive industrial expansion, job creation, and inclusive growth, positioning Ghana’s private sector as a cornerstone of sustainable development,” he stated.
Impact
For his part, the Chief Executive and Investment Officer (CEIO), Jacob Kholi, said the addition of Axis Pensions and Norfund marked an important milestone for GIP and reflected growing confidence in our investment model.
He said over the past two and a half years, GIP had demonstrated that flexible, local currency capital, combined with hands-on support, could unlock meaningful growth for Ghanaian businesses, adding that “this new capital positions us to scale that impact further.”
“GIP has built a strong team to execute its investment strategy, and we are confident in their ability to deliver decent financial returns as well as real economic impact.”
For us, this partnership reflects our strategic focus on real sector investments that support productive local enterprises and drive sustainable economic growth,” the CEO of Axis Pension Trustees, Afriyie Oware, said.
The Regional Director for West Africa, Norfund, Naana Winful Fynn, said: “Access to flexible, long-term capital remains a key constraint for many growing businesses.
GIP’s approach provides an effective model for addressing this gap for SMEs, whilst delivering both development impact and sustainable returns, and is complementary to Norfund’s other investments in Ghana.”
Source:
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