As part of the efforts of the finance the government’s ambitious 24-Hour Economy initiative, the secretariat has revealed plans to take advantage of the country’s pension funds to drive infrastructure development and provide lifelines for small and medium-sized enterprises (SMEs).
Many analysts have been questioning how the government will fund such an ambitious and capital intensive program without piling up debt which could negatively impact the economy.
There has also been numerous calls on the government to find innovative funding solutions to finance the program without throwing the economy into disarray.
It is emerging that one of the innovative solutions is the country’s pension funds. According to Presidential Adviser on the 24-Hour Economy, Goosie Tanoh, the secretariat has signed a memorandum of understanding (MOU) with Petra Trust, Ghana’s largest pension fund, to channel investments into vehicles created by the Ghana Infrastructure Investment Fund (GIIF), as well as venture capital sub-funds tailored for SMEs.
Given the complex and delicate nature of pension funds, Goosie Tanoh told The High Street Journal that the funds from pension will be invested in a safe and secure manner with an exit plan for the funds to be available when needed to pay pensioners.
To achieve this, he noted that the structured sub-funds will channel investments into SMEs, giving them access to affordable financing while ensuring that pension contributors’ funds remain safeguarded.
This dual focus on infrastructure and enterprise funding could accelerate Ghana’s industrial growth and provide the credit lifeline SMEs have long struggled to access.
“We signed an MOU with Petra, the largest pension fund, and the idea is that they will invest in some of the vehicles created by GIIF, the sub-funds, and also the venture capital sub-funds because their rules are very strict, because they have to protect their contributors. They invest in a way that there’s an exit, and they can make their returns without any risk to their basic capital,” he told The High Street Journal.
Following the MOU with Petra, the Presidential Adviser further noted that other pension fund managers will also come on board to provide financing to the program.
“Other pension funds will come in, but that will be more for the infrastructure side, and also more of secure and safe investments with regard to the enterprise level SME funding,” he noted.
Analysts have already indicated that by design, pension funds are long-term investors, making them well-suited for infrastructure projects such as transport, energy, and industrial parks, which require patient capital but promise steady, reliable returns over time.
Unlike short-term bank financing, pension funds thrive on investments that mature over years or even decades, making them a natural fit for projects that build national capacity while delivering predictable returns.
Countries like South Africa and Nigeria already leverage their pension assets to support major infrastructure, and Ghana’s 24-Hour Economy initiative hopes to replicate that model.
The impact of this arrangement, if properly followed through could be far-reaching. Infrastructure investments financed through pension-backed vehicles can cut transport costs, improve energy reliability, and boost trade.
Meanwhile, SMEs supported by venture sub-funds will be better placed to expand, hire more workers, and fuel round-the-clock production, leading to the fruition of the core pillar of the 24-Hour Economy vision.
