By KT Reporter
African Social Security Funds have resolved to establish an African Investment Fund, a special-purpose vehicle designed to address the persistent challenges of accessing financing on the international market.
The decision was reached by the African Social Security Association (ASSA), which brings together social security funds from 15 countries across East, Central, and Southern Africa. The new vehicle will be a contributory fund, with each member contributing between 1 per cent and 5 per cent of the value of its assets.
Patrick Ayota, the Managing Director of the National Social Security Fund (NSSF) Uganda, explained that once approved by regulators in the respective countries, the fund will primarily finance infrastructure projects across Africa.
This was one of the major resolutions from the All-Africa Pension Summit 2025, which dedicated its second day to exploring how pension capital can drive long-term sustainability and social transformation across the continent. The summit, dubbed the “USD 700 Billion in One Room”
All Africa Pensions Summit, brought together pension funds from across the continent under the theme “Pension Funds: Powering Africa’s Growth.” Discussions focused on deepening patient capital, strengthening partnerships, leveraging pension funds for infrastructure development, and enhancing social impact.
The total assets of the member funds are estimated at USD 40 billion, with Uganda’s NSSF, the host of the three-day summit, standing at USD 7.4 billion (26 trillion Shillings). Ayota noted that if each fund were to contribute even 1 per cent, the pooled capital would amount to USD 400 million (1.4 trillion Shillings).
However, the expectation is for an average contribution of 2 per cent, which would raise around USD 800 million, with the potential for even higher commitments. He added that, even at such preliminary figures, the initiative could significantly contribute to the growth of member economies, especially with the World Bank pledging its support.
According to the African Development Bank, Africa faces an annual financing gap of over USD 1.3 trillion to meet its overall development goals. “Pension funds across Africa hold about USD 700 billion in assets under management.
This presents a major opportunity for Africans to catalyse our own economies by providing funding that is not tied to the unfavourable conditions often attached to foreign financing,” Ayota emphasised.
The NSSF has repeatedly urged the Ugandan government to allow the Fund to invest directly in key infrastructure projects such as the Jinja Expressway, energy, and electricity expansion initiatives. Currently, while NSSF invests in government securities, real estate, and listed stocks within Uganda and the East African Community, the NSSF Act limits how much it can diversify its investment portfolio.
If Uganda’s regulators approve NSSF’s participation in the African Investment Fund, it would unlock significant capital for national development and increase value for savers. Dr David Ogong, the Chairman of the NSSF Board of Directors, urged Africans to view pension funds as engines of national development, not merely retirement savings tools.
He called for stronger collaboration among pension funds, governments, and private partners to finance infrastructure and drive growth, while encouraging individuals to embrace a saving culture through innovations like NSSF SmartLife.
Similarly, Peter Moyo, Advisory Board Member at Desmos Capital, hailed the move as an innovative approach to mobilising financing amid growing challenges faced by both governments and the private sector. He encouraged Africa’s pension leaders to think boldly about investment mandates, pension innovation, and infrastructure financing.
Earlier, Meshach Bandawe, Secretary General of the African Social Security Association, highlighted the lack of harmonised regulations as a key obstacle to cross-border project implementation. He called for greater coordination among pension funds and the wider financial sector to mitigate risks and protect members’ contributions.
“We aim to take a leading role in promoting coordination and collaboration. When we work together, we can unlock far greater potential, beyond the USD 700 billion to 1.3 trillion currently underutilised, possibly reaching USD 1.7 trillion in untapped resources,” Bandawe said.
Michael Atingi-Ego, Governor of the Bank of Uganda, also endorsed the initiative, noting that the creation of the Investment Fund would not only boost returns on capital but also reduce the cost of financing public infrastructure.
During the event, the South Sudan People’s Defence Forces (SSPDF) Pension Fund was formally admitted as the newest member of the African Social Security Association.
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