The All Africa Pension Summit, hosted by Uganda, witnessed a powerful and passionate call to action from Hon. Betty Amongi Ongom, the Minister of Gender, Labour, and Social Development, who urged pension fund managers across the continent to fundamentally shift their investment strategy.
The Minister, who officiated the Summit together with the Prime Minister, Rt. Hon. Robinah Nabbanja and the National Social Security Fund (NSSF) Managing Director, Patrick Ayota, challenged delegates to transform the collective $400 billion assets held by African pension funds from “passive repositories of trust” into active engines of African development and self-reliance.
The central theme of her address was the urgent need to redirect this massive domestic capital to finance essential socio-economic infrastructure, thereby breaking the continent’s crippling cycle of debt and dependency on foreign financial institutions.
Breaking the Cycle of Debt and Dependency
Minister Amongi framed the reliance on external loans for national development as a detrimental “treadmill” that keeps African nations “running in place.”
“We are, in essence, paying to be indebted, rather than investing to be empowered,” she stated, adding, “Continuing this way is to accept a future where poverty is a persistent shadow, not a vanquished foe.”
She argued that while foreign loans may finance individual projects, they rarely create a sustainable, self-perpetuating cycle of prosperity, often burdening nations with debt and siphoning away foreign exchange.
The ultimate goal, according to Hon. Amongi, is to build a future where pension funds don’t just guarantee retirement, but actively build the schools, the hospitals, the infrastructure our people deserve; financed, owned, and benefited by us.
Fulfilling Fiduciary Duty Through Nation-Building
Acknowledging the paramount importance of the fiduciary duty to ensure security and return for workers’ retirements, Minister Amongi posed a crucial question to the pension fund managers:
“Where is the greater security, the more sustainable return, than in the tangible growth and stability of our own continent?”
She emphasised that the greatest risk is not in investing in Africa’s own potential, but in failing to do so. The Minister noted that investing in well-structured, transparently managed socio-economic development projects within Africa offers a powerful dual return, which includes:
Robust Financial Returns: Generated from tangible assets and growing domestic economies.
Profound Social Returns: Investing in a stable future, a thriving workforce, and a more prosperous population; factors that ultimately bolster the long-term health and security of the pension funds themselves.
Success Stories as the Blueprint for Investment
The Minister highlighted tangible examples of African pension funds already leading this transformation, showcasing that sovereign investment is financially viable and socially impactful.
She revealed that in South Africa, the Government Employees Pension Fund (GEPF) is managing approximately $1 billion towards renewable energy projects that not only enhance public services but also create jobs.
In Nigeria, the National Pension Commission (PenCom) is harnessing the strength of pension funds, approving $2.5 billion for investment in infrastructure projects critical to the nation’s development.
The Kenya Pension Fund Investment Consortium (KEPIC) has channelled $1 billion into agricultural development, energy, and affordable housing, offering hope and support in sectors that feed and shelter the people.
In Uganda, the National Social Security Fund (NSSF) is leading by example, managing approximately $1.4 billion in local infrastructure projects.
“These investments are not just numbers on a balance sheet; they are bricks in a wall that shelters families, schools that educate our children, and roads that connect communities,” the Minister asserted.
Call for Strategic Partnership
Minister Amongi concluded with a fervent plea for a new call to action: a strategic partnership between African governments and their pension funds.
The government, she stressed, remains committed to robust regulatory frameworks and transparency to ensure pension funds remain solvent and grow stronger. This initiative, she pointed out, is not about diverting funds but leveraging social security funds to build a prosperous future that, in turn, secures even greater social well-being.
“The bold choice is clear; Let our pension funds lend to our governments, invest alongside our governments, in the critical socio-economic projects that will uplift our communities,” the Minister emphasised.
She urged the custodians of the continent to wield their power with vision and courage, moving beyond passive investment to active nation-building to define a destiny of unprecedented African prosperity built on its own capital.