President of the Ghana Bankers Association, John Awuah, is calling for significant reforms in the management of pension funds in Ghana, advocating for the country’s leaders to embrace the Norwegian approach of managing pensions.
John Awuah says the Norwegian Government Pension Fund Global is touted as one of the most successful pension funds in the world, managing over $1.3 trillion.
The President of the Banks Association, who was speaking at the 2025 Money Summit, organized by the Business and Financial Times, proposed that the Norwegian style should be Ghana’s benchmark in the management of the country’s pension funds, if the nation wants to safeguard the future of pensioners.
He explains Norway has been able to heavily diversify the fund, spreading it across areas such as equities, private equities, infrastructure, real estate, and other sectors. This, the President of the Bankers Association says, has been able to shield the fund from market shocks, enhancing cash flows, and ensuring long-term sustainability.
With this lesson, he is calling on Ghana’s pension fund managers to look beyond the government securities and adopt a diversified investment strategy for the fund.
“A clear example of the success of diversification can be seen in the Norwegian government’s pension fund Global. The fund, which manages over $1.3 trillion, has adopted a diversified investment strategy that includes equities, real estate, private equity, and infrastructure. This diversified approach has protected the fund from market fluctuations and has also positioned it as a key player in the global investment landscape,” he recounted.
Another critical lesson John Awuah wants the country to learn from the Norwegian Government Pension Fund Global is that the leadership and management are devoid of national politics and interference.
The management of Norway’s pension, Awuah says, is in the hands of competent and professional persons who act in the interest of the fund and the people, but not political affiliations.
Such a situation, he says, cannot be said of Ghana’s national pension management, which has often been tainted by politically motivated leadership and decisions. Awuah emphasized that Norway’s real strength lies in how it appoints and insulates its fund managers.
He is therefore cautioning against the politicization of institutions like the Social Security and National Insurance Trust (SSNIT). He decried the practice where leadership of such critical institutions is often tied to the political life cycle, with appointments frequently changing along with governments, compromising long-term strategy and continuity.
“Aside from the portfolio management strategy, the government appointed professionals with the right experience and skillset to manage these national pension funds,” he recounted.
He continued, “I therefore call on our political parties to at all times ensure that the Social Security and National Insurance Trust’s SNIT leadership team is always fit for purpose and their term of office is not mixed up with SOEs whose leadership tenure is coterminous with the political leadership change.”
John Awuah is convinced that if Ghana can emulate the Norwegian model through leveraging diversification within the pension funds and ensuring professional leadership, the country can mitigate the risks associated with economic volatility and promote long-term financial stability for our pensioners.
