Private equity and pension funds drive investment and job creation

Ghana’s private equity and pension fund industries are taking a stronger role in supporting private sector growth, job creation and national development. This comes as global strategies move away from relying mainly on foreign aid and instead focus on using local capital to build stronger economies.

Across the world, experts say patient and affordable capital is still needed for small and growing businesses. But pension funds, private capital firms and business support organisations now argue that countries must invest more of their own money into real economic sectors. They also stress the need for support programs that help build business capacity and strengthen markets.

In Ghana, pension funds are increasingly investing in private equity as part of a broader strategy to diversify and reduce risk. Major pension firms like Enterprise Trustees, Stanbic Investment Management Services and Petra are directing more of their funds into private equity and venture capital.

More pension fund managers are also signing the Pension Industry Compact by the Ghana Venture Capital and Private Equity Association (GVCA). The compact encourages pension funds to invest in private equity and co-investment opportunities that support local businesses.

Joseph Ampofo, Managing Director of Enterprise Trustees, said the company has long believed in investing in ways that help the economy grow. He said private equity is a strong tool for supporting small and medium-sized businesses, which he described as the “heartbeat” of Ghana’s economy. He added that investing in these businesses helps create jobs, encourage innovation and build stronger communities.

He said private equity gives pension funds the chance to shape the economy and create more job opportunities for young people. By joining the GVCA Compact, he explained, they are choosing to invest money where it will make the biggest impact.

But experts say raising capital is only one part of the solution. There must also be enough strong, investment-ready businesses. CEO of the GVCA, Amma Gyampo, said the association is working to prepare more SMEs for investment through training programs, advisory services and investor matchmaking. She said these support systems help reduce risk and make SMEs more attractive to investors.

She stressed that with the right policies and stable economic conditions, private equity can help small businesses grow and contribute more to the economy. She added that GVCA is ready to work with the government to promote job creation and business growth.

Following the recent tragedy at El Wak Stadium, which exposed the scale of unemployment in Ghana, experts say the government now has an opportunity to partner with pension and private equity leaders to unlock local talent, resources and investment.

They believe the growing interest from local investors shows a shift towards using private equity to help solve major national challenges in areas such as health, education, food security and financial services. Experts say this approach strengthens the real economy and supports long-term development.