The Chief Executive Officer of the National Pensions Regulatory Authority (NPRA), Mr. Christopher Boadi-Mensah, has called for a strategic shift in Ghana’s pension investment landscape, advocating for a greater allocation to alternative investments to boost long-term national development and ensure pension sustainability.
Mr. Boadi-Mensah said Ghana’s pension assets, now valued at over GH¢90 billion (approximately US$8 billion), have the potential to transform the economy if invested prudently in areas such as infrastructure, renewable energy, real estate, venture capital, and agribusiness.
“Pension funds are long-term in nature. They are ideal for financing roads, housing, rail, and clean energy. By investing in venture capital and private equity, we can also support local businesses, particularly in tech and manufacturing,” he said.
He warned that the traditional reliance on government securities is reaching its limit, exposing the system to concentration risks and low real returns, especially under inflationary conditions. “Overexposure to one asset class increases systemic risk. Diversifying into alternatives provides a more balanced and resilient portfolio,” he explained.
To support this shift, the NPRA is revising its investment guidelines to open up space for high-quality alternative assets, while maintaining safety and transparency. The Authority is also introducing a Risk-Based Supervision (RBS) model, an oversight approach driven by data and proactive risk management to safeguard market stability.
Mr. Boadi-Mensah further emphasized the importance of Environmental, Social, and Governance (ESG) principles, saying Ghana must align with global trends that prioritize sustainable and socially responsible investment practices.
Key among NPRA’s reforms is the Pensions Digital Ecosystem (PDE), a seamless digital platform integrating Ghana Card IDs, mobile money, and real-time contribution tracking.
Also, a special payment system for the informal sector is also being developed to enable flexible contributions and enhance pension coverage for the majority of Ghana’s workforce.
“Our obligation is to protect and grow these savings prudently, and ensure they are available for retirement,” he said.
