24-Hour economy to benefit from Pension Fund investments
By Praisebell Rosemond Larbi
Ghana’s ambitious 24-Hour Economy initiative is turning to the country’s pension funds to finance critical infrastructure projects and support small and medium-sized enterprises (SMEs).
Officials say pension assets offer safe, long-term capital that protects contributors’ savings while driving growth, creating jobs and enabling round-the-clock industrial expansion.
The financing plan addresses a key concern among analysts: how to fund such a capital-intensive programme without piling up debt. Critics have warned that relying solely on government borrowing could undermine economic stability.
In response, the 24-Hour Economy Secretariat has identified pension funds as an innovative, low-risk funding solution.
Presidential Adviser on the 24-Hour Economy, Goosie Tanoh, revealed that the secretariat has signed a memorandum of understanding (MOU) with Petra Trust, Ghana’s largest pension fund manager.
Under the agreement, Petra will channel investments into vehicles created by the Ghana Infrastructure Investment Fund (GIIF) and into venture-capital sub-funds tailored for SMEs.
“Funds from pensions will be invested in a safe and secure manner, with a clear exit plan so contributors’ benefits are protected,” Mr Tanoh said in a media interview.
He explained that the structured sub-funds will provide affordable financing for SMEs while ensuring pension capital remains safeguarded and liquid when needed to pay retirees.
Following the Petra deal, other pension fund managers are expected to participate.
“Other pension funds will come in, particularly for the infrastructure side, with more secure investments supporting enterprise-level SME funding,” Mr Tanoh added.
Analysts note that pension funds are natural long-term investors, making them ideal for large-scale infrastructure such as transport networks, energy projects and industrial parks.
Unlike short-term bank financing, pension funds thrive on investments that mature over years or decades, offering predictable returns while building national capacity.
Countries like South Africa and Nigeria have successfully used pension assets to support infrastructure, a model Ghana aims to replicate.
