Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has called for a complete rethink of Ghana’s pension fund investment strategy, warning that workers’ retirement savings are being undermined by weak returns on existing portfolios.
Delivering the keynote address at the maiden Mining and Minerals Convention in Accra on September 9, Mr. Gyamfi questioned why the Social Security and National Insurance Trust (SSNIT), Ghana’s largest pension manager, has consistently recorded negative or near-negative real returns on its investments.
This, he said, is largely because pension funds are tied up in “unproductive ventures that do not provide adequate protection against inflation.” By contrast, he noted that foreign pension funds and sovereign wealth funds have taken bold positions in mining and extractives, reaping steady and inflation-proof returns.
“It is ironic that while global funds are investing in our mining sector and profiting from it, Ghana’s own pensions are exposed to underperforming assets,” he stated.
Mr. Gyamfi urged policymakers and regulators to reorient Ghana’s pension investment strategy by channeling significant portions into the country’s gold value chain. He argued that gold has historically proven to be a safe-haven asset, especially in times of economic volatility, and would provide Ghanaian workers with better security in their retirement years.
As part of this vision, the GoldBod CEO proposed the creation of locally managed but globally benchmarked equity and debt funds, designed specifically for mining and natural resources. Such vehicles, he explained, would pool pension contributions into structured investments in gold exploration, refining, and value addition while delivering stable long-term returns.
Mr. Gyamfi further urged financial institutions, fund managers, and regulators to collaborate with GoldBod to design instruments that would align Ghana’s pension assets with its natural resource potential.
According to him, such a strategy would not only protect workers’ savings but also ensure that Ghanaians have a greater stake in their own gold wealth, rather than leaving it entirely to foreign capital.
