The idea of pooling these funds into a joint African investment platform has gained momentum as leaders seek to reduce reliance on external borrowing. By directing pension resources into regional infrastructure, energy, and technology projects, African nations could turn retirement savings into drivers of inclusive development. Nigerian economist and Awabah CEO Tunji Andrews says such a shift could redefine how Africa finances its future.
He noted that most pension funds on the continent remain tied to low-yield domestic bonds, while nations continue to borrow from abroad for development. Andrews emphasized that cross-border collaboration among regulators could unlock long-term financing for roads, power grids, and agriculture, all while safeguarding contributors’ savings.
“If we're going to build infrastructure, it is always a little better if we build roads that connect West Africa and roads that connect East Africa […] or power stations that serve a region as against serving a state, and it's able to be more profitable per unit cost. So I think if you look at it from those perspectives, it does make a lot of sense. And you also look at the risk diversification for the continent. It helps pension funds to be able to double down on building the continent to which the pension funds are being collected from. So, the people are not only saving for the future, they are also building the future on the same side,” Andrews said.
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