The Chief Executive-Ghana Association of Banks, John Awuah, believes the country’s domestic pension system requires refinements grounded in diversification, governance reform and professional management if it is to remain sustainable and deliver adequate retirement income for the country’s aging population.
According to John Awuah, the country must shift from its “heavy reliance solely on government securities” and restructure pension fund portfolios to reflect the economic realities of a more volatile world.
“We must embrace cooperative investments, build financial literacy and ensure professional management of our pension funds,” he added.
His remarks come in the wake of government’s infamous Domestic Debt Exchange Programme (DDEP) which significantly affected pension fund valuations, undermining investor confidence and drawing criticism from fund managers and contributors alike.
Mr. Awuah called for greater emphasis on alternative investments, noting that Ghana Stock Exchange (GSE) recently launched a Commercial Paper market for the first time – offering a viable alternative to government securities.
Beyond commercial paper, Mr. Awuah identified private equity, real estate, infrastructure and renewable energy as promising asset classes that could better protect pensions from macroeconomic shocks and improve long-term returns.
He made these remarks at the Money Summit (TMS2025) 2025 edition in Accra themed ‘Optimising investment and pensions management: Strategies for sustainable retirement income and economic growth’.
Mr. Awuah cited the Norwegian Government Pension Fund as a benchmark example. The US$1.3trillion fund, he noted, “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 also positioned it as a key player in the global investment landscape”.
Additionally, he urged reforms at the Social Security and National Insurance Trust (SSNIT) – the nation’s largest pension fund, which has frequently faced criticism over its governance structure.
“We must at all times ensure that the Social Security and National Insurance Trust core leadership team is always fit for purpose and their term of office is not based on SOEs whose leadership tenure is coterminous with political leadership change,” he charged.
Pension fund managers must be held to professional standards that focus on professionalism, performance, transparency and long-term system management.
Ghana, like many developing countries, faces a growing shortfall in retirement savings; with the average monthly pension payment still inadequate to cover basic living costs.
