Economy

Proposed Africa Pension Infrastructure Fund Gains Attention

AI SUMMARY

A proposed continental fund aims to channel billions in African pension assets into infrastructure projects while tightening regulatory safeguards.

A proposed Africa Pension Infrastructure Fund aims to mobilise retirement savings for energy, transport, affordable housing, and digital infrastructure.
National Bank of Ethiopia Governor Eyob Tekalign called for harmonised investment regulations and stronger supervisory safeguards during the inaugural African Social Security Summit in Addis Ababa.
The Africa Social Security Association estimates that the continent's social security institutions collectively manage over 800 billion US dollars in pension assets.
A hypothetical one percent allocation of the continent's pension assets would generate at least 8 billion US dollars for infrastructure financing.
African pension funds, insurance institutions, and sovereign funds collectively hold more than 4 trillion US dollars in domestic capital.
Much of the continent's institutional capital remains concentrated in government securities and short-term financial instruments.
Social security institutions must maintain sufficient liquidity and meet obligations to retirees while exploring infrastructure investments.
Ethiopia is developing domestic capital markets and reforming its financial sector to support long-term investment.
The African Social Security Summit took place from 29 to 30 October at the United Nations Conference Centre in Addis Ababa.