Ghana’s Private Sector Chief Demands Pension Fund Reform to Boost Business Growth
Ghana’s Private Sector Federation CEO Nana Osei Bonsu is pushing for a major shift in how the country manages pension funds. He wants these funds redirected from government securities into private sector investments to strengthen business growth.
Currently, Ghana’s pension system heavily invests worker retirement savings in government bonds and securities. Bonsu argues this approach limits economic development by keeping capital away from businesses that could create jobs and drive innovation.
The federation leader believes pension funds should actively support local companies instead of primarily financing government operations. This policy change could provide businesses with crucial capital for expansion while potentially generating better returns for pension holders.
Ghana’s pension industry manages billions of cedis in worker contributions across multiple schemes. The National Pensions Regulatory Authority oversees these funds, which traditionally favor low-risk government instruments over private sector investments.
Bonsu’s proposal reflects growing concerns about Ghana’s economic challenges and the need for alternative funding sources for businesses. Many African countries face similar debates about balancing pension security with economic growth objectives.
The Private Sector Federation represents thousands of businesses across Ghana’s economy. Their call for pension reform comes as the country seeks new strategies to boost private sector development and reduce dependence on government-led economic initiatives.
This policy shift would require regulatory changes and careful risk management to protect workers’ retirement savings while supporting business growth.
