Pension fund investments in private equity are being held back by weak governance and unclear strategies. Kwabena Boamah, Managing Director of Stanbic Investment Management Services Limited, stated this at the 2026 Annual Conference of the Ghana Venture Capital & Private Equity Association (GVCA). He highlighted that these shortcomings limit the flow of capital into promising private companies. These companies could otherwise fuel economic development across Ghana.
Mr. Boamah explained that many pension fund trustees lack specialized teams. These teams are needed to properly assess private equity opportunities. This capability gap leads to hesitation. Trustees often see summarised reports, not detailed financial models. This prevents them from fully understanding and trusting potential investments. Poorly defined investment policies also cause funds to react to opportunities. They fail to execute a planned strategy for alternative assets. This was a key point made during his presentation on "Pension Fund Co-Investment Success".
Ghana's pension system has grown significantly over the years. Total pension assets stood at approximately GHS 46.5 billion by the end of 2023. However, only a small portion of this is allocated to alternative investments like private equity. This is much lower compared to more developed markets. Mr. Boamah's call for better strategy echoes previous concerns about underutilised domestic capital. Efficiently deploying these funds could boost local businesses and create jobs. It aligns with national goals for economic diversification and growth, a challenge seen in recent economic reports.
"There is a clear capability gap," Mr. Boamah stated at the GVCA conference. "In many cases, trustees are presented with summarised outputs rather than the underlying financial models." He added that investment committees can also become bottlenecks. This happens when decision-making is too concentrated. "Strong governance is non-negotiable," he stressed. "Investors must ensure they have the necessary rights and oversight mechanisms to protect their capital."
The implications of these governance issues are significant. Untapped pension funds could provide much-needed capital for Ghanaian businesses. This funding is crucial for expansion and innovation. Weaknesses in policy and governance mean this capital remains locked. Decision-makers at regulatory bodies like the National Pensions Regulatory Authority (NPRA) will need to address these points. Fund managers will also need to build more trust and transparency. Investors will be watching for policy changes that encourage more strategic private equity allocations. This could unlock substantial economic potential for Ghana.