Pension funds can fuel Africa’s future, Nabbanja tells summit

KAMPALA - Prime Minister Robinah Nabbanja has urged African countries to harness the continent’s vast pension assets to fund their own development, saying the money locked in retirement funds could transform economies if invested in infrastructure and productive sectors.

Speaking at the opening of the three-day Africa Pension Summit at Speke Resort Munyonyo, Nabbanja said Africa’s combined pension savings, estimated at $1.4 trillion, could become the capital base for roads, power, housing and industries that create jobs and cut the cost of doing business.

“If we took advantage of this $1.4 trillion fund, we can do a lot. We have land and labour, but we have been short of capital and entrepreneurship. Development must translate into jobs and wealth for households, not just public infrastructure,” she said.

Nabbanja said Uganda’s National Social Security Fund (NSSF) has evolved from a savings scheme into a major investor in affordable housing and renewable energy.

The summit, attended by pension fund leaders across Africa, regulators and development partners, is focusing on how to channel long-term savings into investments that promote inclusive growth and financial stability.

Leonard Zulu, the United Nations resident coordinator in Uganda, said pensions represent patient capital that can drive Africa’s transformation if managed with strong governance and sustainability standards.

Patrick Ayota, Managing Director NSSF, during the All Africa Pension Summit at Munyonyo Speke Resort on November 5, 2025. (Credit: Mary Kansiime)

He noted that pension funds can help finance clean energy, resilient infrastructure and climate-smart agriculture while delivering returns for savers.

Zulu said the UN is supporting efforts to align public budgets, tax policy and private capital with sustainable development goals.

David Owino, chair at East Africa Private Equity & Venture Capital Association, said, “For too long, we have leaned on external capital. Today, private equity funds operating in Africa and East Africa only get 1% of the Funds they are managing from Africa, and the rest comes from outside Africa. This means some people believe in developing Africa more than Africans believe they can develop themselves.”

Patrick Ayota, managing director at NSSF, said while Africa has one of the lowest default rates globally at just about 1.4%, the cost of capital across Sub-Saharan Africa remains disproportionately high.