Accra, 31st July 2026: The African pension industry is missing up to US$30 billion annually from the vast African diaspora community working abroad. This was said at the 7th Annual African Pension Supervisors Conference, which opened in Accra, Ghana today. Contributions from the diaspora community have remained minimal, compared to other metrics. Informal diaspora remittances, in the form of gifts and informal loans to family, for instance, hit US$667 billion last year.
The lack of contributions to pensions back home is due to a host of factors, among them the lack of appropriate regulatory frameworks that enable key aspects such as hard-currency contributions and benefits passporting, which would allow the diaspora community to settle wherever they’d wish during retirement and still enjoy their benefits.
The annual meet of regulators and players in the pension sector was officially opened by His Excellency John Dramani Mahama, President of the Republic of Ghana, held under the theme “Re-imagining Old Age Income Security in Africa: Confronting Today’s Realities, Shaping Tomorrow’s Resilience.” In his address, President Mahama underlined the strategic importance of pensions in the socioeconomic growth of the continent, noting that a thriving pensions industry held the dignity of senior Africans, the creation of economic opportunities for the continent’s burgeoning youthful population and investment in key sectors. “Our young people must see pensions not as a retirement issue, but as a lifelong investment in financial independence, national development, and a secure future,” said the President.
Ghana’s Finance Minister underscored the role of pensions industry in building a modern Africa. “Pensions are more than retirement benefit- they are a strategic investment in a nation`s future. They provide financial security in old age, foster long-term savings, and generate capital for economic development. Expanding pension coverage, particularly among the youth and informal sector workers, is essential to building resilient, inclusive, and prosperous societies across Africa” said the finance minister.
Chris Boadi-Mensah, CEO of Ghana’s National Pensions Regulatory Authority, underlined the need for bolder reforms that will enhance inclusion by targeting emerging sectors such as diaspora communities and the informal sector, through more bespoke approaches that better align with the earning cycles of casual and daily-wage workers. He also called for bolder adoption of risk-based supervision and standardised pension data frameworks to modernise the sector. The CEO also highlighted Nigeria, whose legal framework has allowed hard currency contributions, with predictably growing assets under management (AUMs) to 17 trillion naira (US$ 12.3 billion)
Head of the APSA Secretariat, Dr Shem Ouma, called for smart pension approaches that ensures that the continent maximises its youth dividend by growing its assets and making wise and safe investments. “As Africa’s population continues to grow at approximately 2.4% (about 35million people are added to Africa’s population each year) and life expectancy increases (approximately 64years), we must develop pension systems that are inclusive, financially sustainable, and capable of providing adequate income security in old age”, observed Ouma.
Specialist development finance agency FSD Africa rooted for greater diversification and allocation by the pensions industry away from traditional, conservative investments in government securities. “The pension assets have grown to a historic high of US$700 billion. These resources can play a vital role in the socio-economic transformation of the continent and plug key gaps in infrastructure, energy and SME finance”, said Dr Evans Osano, Chief Financial Markets Officer at FSD Africa.
The 7th APSA Conference is expected to produce actionable recommendations that will help shape the future of retirement income security in Africa. A communique of key resolutions adopted will be shared at ethe end of the conference. ENDS…
Notes to the Editors,
For more information, please contact,
1. National Pensions Regulatory Authority (NPRA) please contact Corporate Affairs Manager, Collins Apraku on email address, collins.apraku@npra.gov.gh
2. FSD Africa please contact Senior Communications Manager, Kaara Wainaina on email address, kaara@fsdafrica.org
About Africa Pension Supervisors Association (APSA)
APSA is a coordinated platform that brings together pension industry regulators and supervisors from across Africa. The association was formally launched in September 2019 at the first Africa Pensions Supervisors Conference held in Nairobi. The founding member countries are Nigeria, South Africa, Kenya, Uganda, Zambia and Rwanda. The current membership is made up of regulators from 15 countries and are responsible for over US$350 billion assets – over 86% of pension assets in Africa. The association seeks to enhance pension supervision and regulation by providing a platform for collaboration, co-operation and exchange of information and ideas to better supervise, regulate and grow the pension sector in the continent. The network is poised to accelerate the pace of reforms in the pension space for greater economic impact in Africa. For more information, please visit: https://www.africapsa.org
About National Pensions Regulatory Authority (NPRA)
The National Pensions Regulatory Authority (NPRA) is the statutory regulator established under the National Pensions Act (Act 766) to oversee and regulate Ghana`s three-tier pension system. Its mandate is to ensure the efficient administration, sound governance , and sustainability of the efficient administration, sound governance, and sustainability of the pension industry by licensing and supervising pension service providers , registering pension schemes, enforcing compliance with pension laws and regulations, protecting contributors ` retirement savings , promoting public education on pensions , resolving pensions-related disputes, advising government on pension policy, and fostering a transparent , secure, and resilient pension system that guarantees income security for workers in retirement. The Authority has offices in most regions in Ghana, Please Visit: https://www.npra.gov.gh
About FSD Africa
FSD Africa is a specialist development agency making finance work for Africa’s future. We work with governments, regulators, and financial institutions across 30 countries to strengthen markets, shape policy, and mobilise capital into opportunities supporting growth, climate resilience, the clean energy transition, and nature positive development. Supported by the UK Government alongside philanthropic and development partners, we also deploy catalytic capital through our investment arm, FSD Africa Investments. For more information, please visit: https://www.fsdafrica.org
