John Awuah, who leads the Ghana Association of Banks as the Chief Executive, feels that the nation’s local pension framework needs improvements based on diversification, enhanced governance, and skilled management to stay sustainable and provide sufficient retirement benefits for Ghana’s growing elderly populace.
As per John Awuah, the nation needs to move away from depending heavily only on government securities and adjust pension fund portfolios to align with the economic challenges posed by an increasingly unpredictable global landscape.
“We should adopt collaborative investment strategies, enhance financial education, and guarantee skilled oversight of our retirement funds,” he emphasized.
His comments follow the government’s controversial Domestic Debt Exchange Program (DDEP), which notably impacted pension fund values, eroded investor trust, and faced backlash from both fund managers and participants.
Mr. Awuah emphasized the importance of focusing more on alternative investment opportunities, pointing out that the Ghana Stock Exchange (GSE) has just introduced a new Commercial Paper market – providing a practical substitute for government bonds.
Mr. Awuah pointed out that beyond commercial paper, alternative investment categories such as private equity, real estate, infrastructure, and renewable energy present attractive options for enhancing pension funds’ resilience against economic fluctuations and boosting their performance over the long term.
He delivered these comments during the TMS2025 2025 conference held in Accra with the theme
‘Enhancing investment and pension management strategies: Approaches for secure retirement income and economic development.’
Mr. Awuah referred to the Norwegian Government Pension Fund as an exemplary case. He pointed out that this $1.3 trillion fund “employs a wide-ranging investment strategy encompassing stocks, real estate, private equity, and infrastructure. Such diversification has shielded the fund from market volatility and established it as a significant actor in the international investment arena.”
Moreover, he called for changes at the Social Security and National Insurance Trust (SSNIT), the country’s biggest pension fund, which has often been criticized regarding its management framework.
“We must consistently guarantee that the Social Security and National Insurance Trust core leadership team remains effective and their terms are independent of State-Owned Enterprises, where leadership tenures typically align with changes in political leadership,” he asserted.
Managers of pension funds should adhere to professional standards emphasizing expertise, performance, openness, and the sustained administration of systems.
Similar to numerous developing nations, Ghana grapples with an increasing gap in retirement funds; the typical monthly pension remains insufficient to meet essential living expenses.
Provided by Syndigate Media Inc. (
Syndigate.info
).
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