The CEO of the Private Sector Federation, Nana Osei Bonsu, has called for a shift in how Ghana's pension funds are managed, urging that more of these funds be invested in the private sector instead of being tied up in government securities.
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‎Speaking on JoyNews’ PM Express on July 10, 2025, he highlighted two major challenges facing Ghanaian businesses: the high cost of borrowing and limited access to long-term capital.
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‎He believes redirecting pension funds into the private sector could ease these pressures.
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‎According to him, Ghana’s three-tier pension scheme, which the Federation helped shape, was designed to boost private sector participation, especially through the third tier.
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‎However, he says the current system isn’t generating enough capital for real sector investment, even though the private sector controls roughly 35–36% of pension assets.
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‎He expressed concern that many pension fund managers continue to invest heavily in government instruments like treasury bills and bonds rather than channeling funds into productive ventures.
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‎“That’s not what the third tier was created for" he noted.
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‎Bonsu argued that if more pension contributions were invested in local businesses, it would significantly increase capital availability, improve loan accessibility, and help bring down interest rates.
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‎“When there’s more capital chasing fewer investment opportunities, naturally, interest rates will fall" he explained.
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‎DR/MA

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