Africa bets on $700 billion in pension capital to end aid dependence

At the All Africa Pension Summit held in Kampala from November 5 - 7, ministers, central bankers, regulators, and institutional investors converged around a common goal, unlocking Africa’s estimated $700 billion in pension assets to fund infrastructure and other priority sectors, The Independent Uganda reports.

Hosted by Uganda’s National Social Security Fund (NSSF), the summit was themed “Unlocking Africa’s Pension Potential for Sustainable Development.” The event highlighted the urgent need to bridge the continent’s massive infrastructure gap using domestic capital.

“The strategic use of pension capital is integral to Uganda’s Ten-Fold Growth Strategy,” said Dr. Michael Atingi-Ego, Governor of the Bank of Uganda, in his keynote address. He called pension savings “patient capital,” ideally suited to building long-term infrastructure such as roads, schools, hospitals, and energy systems.

Atingi-Ego urged African nations to align pension investment with national development goals, backed by sound macroeconomic policies like inflation control and currency stability. He also called for the creation of new financial instruments, including green bonds and infrastructure bonds, to facilitate responsible and impactful pension fund investments.

Further, Uganda’s Prime Minister Robinah Nabbanja, delivering remarks on behalf of President Yoweri Museveni, described NSSF Uganda as “an important contributor to national development,” supporting its investments in affordable housing, renewable energy, and infrastructure.

“Africa urgently needs both capital and entrepreneurship to accelerate development,” Nabbanja said. “Our pension funds present a unique opportunity to mobilise domestic capital for critical sectors such as energy, infrastructure, and transport.”