The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, is advocating a strategic shift in pension fund investments to ensure sustainability.
According to him, this could significantly improve pension fund investments, boost returns, reduce the current overreliance on government securities, and strengthen the financial sector.
Speaking at the 2025 Money Summit organized by the Business & Financial Times (B&FT) in Accra, Mr. Awuah stressed the need for fund managers to explore alternative investment tools that can deliver long-term value and support national development.
He emphasized that the future of investment and pension fund management requires a fundamental shift in the approach to risk diversification and governance.
He added that the country must embrace alternative investments and ensure professional management of pension funds. This approach would not only ensure the sustainability of pension funds and their value for retirement but also foster an environment conducive to economic growth.
His remarks come at a time when the country’s financial sector has faced a reduction in returns from investments in government securities due to the domestic debt exchange exercise. Additionally, there are concerns about poor investment decisions and low returns from investments made by the country’s largest pension trustee, the Social Security and National Insurance Trust (SSNIT).
Mr. Awuah supported the call for the creation of a balanced portfolio that diversifies risks when investing pension funds. He also stressed the importance of good governance practices in the management of pension funds.
The Money Summit is a strategic platform created by the Business and Financial Times to discuss issues affecting the financial sector. This year’s edition was themed “Optimizing Investment and Pension Management: Strategies for Sustainable Retirement Income and Economic Growth.”
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