The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, is advocating a strategic shift in pension fund investments to ensure its sustainability.
According to him, this could significantly improve pension fund investments, boost returns, reduce the current overreliance on government securities and guarantee a robust financial sector.
Speaking at the 2025 Money Summit programme organized by the Business & Financial Times (B&FT) in Accra, Mr. Awuah stressed the need for fund managers to explore alternative investment tools that can deliver long-term value, and support national development.
“The future of investment and pension fund management together, require a fundamental shift in our approach to risk diversification and governance,” he said.
“We (the country) must embrace alternative investments and ensure professional management of our pension funds. By doing so, you will not only ensure that pension funds are sustainable and provide value for retirement, but also to foster an environment of economic growth,” he added.
The warning comes at a time the country’s financial sector has suffered a cut in returns from investments in government securities as a result of the domestic debt exchange exercise.
Also, there are concerns of wrong investment decisions and low returns from investment made by the country’s largest pension trustee, Social Security and National Insurance Trust (SSNIT).
He backed the call for the creation of a balanced portfolio which diversifies risks, when investing pension funds.
Mr. Awuah stressed on the need for good governance practice in management of pension funds.
“The future of investment and pension fund management together requires a fundamental shift in our approach to risk diversification and governance. We must embrace alternative investments and ensure professional management of our pension funds. By doing so, you will not only ensure that pension funds are sustainable and provide value for retirement, but also to foster an environment of economic growth.”
The Money Summit is strategic platform created by the Business and Financial Times to discuss issues affecting the financial sector. The Theme for this year’s edition was, “Optimizing investment and pension management: Strategies for sustainable retirement income and economic growth”.
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