Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has underscored the growing importance of pension systems in maintaining financial stability, saying they have become a critical pillar of Africa’s financial architecture and long-term economic development.
Speaking at the 2026 Annual Conference of the Africa Pensions Supervisors Association (APSA) in Accra on July 30, Dr. Asiama said pension systems are no longer merely retirement savings vehicles, but major institutional investors whose performance directly affects monetary policy, capital markets and public confidence in the financial system.
Addressing regulators, policymakers and financial sector leaders, the Governor noted that financial stability represents a promise to workers that the savings they contribute throughout their careers will remain secure and retain their value decades into the future.
“For the worker making a contribution today, financial stability is not an institutional concept; it is a promise,” he said. “It is the expectation that 30 or 40 years from now, the records will still be accurate, the assets will still be secure, the institutions will still be standing, and the money itself will still have meaningful value.”
Dr. Asiama observed that discussions on financial stability have traditionally focused on the banking sector, but said today’s increasingly interconnected financial system requires greater attention to non-bank financial institutions, including pension funds.
He revealed that pension assets under management across Africa are estimated to exceed US$420 billion, making the sector one of the continent’s largest sources of long-term domestic capital.
In Ghana, he said, the 2025 Financial Stability Review showed pension assets increased by 26.3 percent over one year, rising from GH¢86.23 billion in 2024 to more than GH¢100 billion in 2025. The industry now accounts for 16.8 percent of the country’s total financial sector assets.
“At that scale, pensions are not peripheral to the financial system. They are one of its major pools of long-term domestic capital,” he stated.
The Governor identified price stability as one of the most important factors in protecting pension savings, warning that persistent inflation erodes the purchasing power of retirees.
He recalled that Ghana’s inflation rate peaked above 54 percent at the end of 2022 before declining significantly to 5.3 percent last month.
According to him, maintaining low and stable inflation is one of the central bank’s most important contributions to safeguarding retirement savings.
“Price stability is a necessary condition for preserving the real value of long-term savings. It is a contribution a central bank makes to every retirement account in the country,” he said.
Dr. Asiama also highlighted changes in the investment composition of Ghana’s private pension funds, noting that holdings in Government of Ghana securities declined from 72.9 percent to 64.5 percent, while investments in equities increased from 5.7 percent to 12.2 percent. Investments in bank and other money market securities also rose from 8.6 percent to 14.6 percent.
He clarified that the figures were not intended as an assessment of trustees’ investment decisions but to illustrate how pension funds increasingly influence financial markets.
He explained that because pension funds hold significant investments in government securities, banking instruments and equities, changes in their portfolios can affect market liquidity, investor confidence and the transmission of monetary policy.
Beyond financial performance, the Governor stressed the need for strong operational resilience within pension systems.
He said pension schemes must ensure secure records, reliable digital systems and robust cybersecurity to protect contributors’ data and maintain public confidence.
“A promise that cannot be honoured is not a promise at all,” he said, adding that cyber resilience, business continuity and data integrity are now essential components of financial stability.
Dr. Asiama urged closer cooperation among financial regulators, noting that no single institution can effectively oversee the growing interconnections between pension funds, capital markets, banks and insurance companies.
He explained that while pension regulators supervise retirement schemes, securities regulators oversee investment markets, insurance regulators monitor insurers and the Bank of Ghana manages monetary policy and banking supervision.
He said stronger collaboration among regulators would help identify emerging risks and strengthen the resilience of Africa’s financial systems.
The Governor commended the National Pensions Regulatory Authority and the Africa Pensions Supervisors Association for convening the conference, describing it as a timely platform for advancing discussions on pension reform and financial stability across the continent.
By Evelyn Tengmaa
