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Pension Focus Africa 2017- Allocation of African Pension Assets

By: Faridah Mugimba Kakyama African pension funds are starting to invest in infrastructure projects on their underdeveloped continent. The African Development Bank hopes the deepening pool of homegrown savings can fill the $45 billion hole it sees in annual infrastructure financing needed in Africa. “It’s an unprecedented chance to make the investments in infrastructure and other sectors that the continent so desperately needs,” said David Ashiagbor, who runs a division of the bank devoted to developing financial markets in Africa. Until recently, most pension funds in Africa were hesitant to invest in infrastructures such as roads, railroads, and ports. Tying up cash in decade-long projects seemed unnecessarily risky while strong economic growth was driving up local stock markets. Africa’s economy has recently grown by about 5% annually thanks to strong oil and mineral output as well as the rise of a nascent consumer class. The continent’s sovereign bonds were also…