African Pension Funds unite to establish “Development Fund for Africa” at $700 billion summit

Kampala, Uganda | THE INDEPENDENT | Pension fund leaders from across Africa are joining forces for the first time to create a unified “Development Fund for Africa,” a bold initiative aimed at mobilising domestic capital for the continent’s growth and reducing dependence on traditional foreign funding sources. The announcement comes ahead of the “$700 Billion in 1 Room” All Africa Pensions Summit, scheduled to take place from 5th to 7th November at the Munyonyo Convention Centre in Kampala, Uganda.

The Summit, hosted by the National Social Security Fund (NSSF) Uganda under the theme “Pension Funds – Powering Africa’s Growth,” will bring together policymakers, investors, and pension administrators to explore ways of deepening Africa’s pool of patient capital and strengthening partnerships for infrastructure and social impact investments.

According to the African Development Bank, the continent faces a staggering annual financing gap, with development goals requiring over $1.3 trillion each year. Against this backdrop, leaders in the pensions and social security sector — including Meshach Bandawe, Secretary General of the Africa Social Security Association (ASSA); Patrick Michael Ayota, Chairperson of the International Social Security Association (ISSA) East Africa Liaison Office; and Leonard Zulu, United Nations Resident Coordinator for Uganda — called for urgent innovation in financing Africa’s development.

“Pension funds across Africa hold about $700 billion in assets under management. This presents a major opportunity for Africans to catalyse our own economies by providing funding that is not tied to unfavourable conditions from foreign agencies,” said Ayota, who also serves as Managing Director of NSSF Uganda, East Africa’s largest pension fund valued at more than $7 billion. He added that as global geopolitics continue to shift, traditional sources of external funding can no longer sustain Africa’s growing infrastructure needs.

Zulu echoed this sentiment, urging African nations to focus on mobilising domestic savings, diaspora remittances, and blended financing models to reduce reliance on aid. “The traditional models of development cooperation are being redefined. Official development assistance, though vital, is no longer sufficient to meet the scale and complexity of the challenges Africa faces today,” he said. “We are witnessing declining aid flows, shifting geopolitical priorities, and growing funding uncertainties. It is vital to develop actionable strategies that enhance domestic resource mobilisation and foster sustainability.”

Highlighting the urgency of this shift, Zulu noted that 15 of Africa’s 20 traditional donor partners have already reduced their funding, reinforcing the need for the continent to move from an “aid to trade” model — one that empowers small and medium enterprises through access to capital and investment opportunities.

Bandawe of ASSA stressed that African pension and social security funds must take a central role in financing the continent’s future. “Pension funds are increasingly being recognised as critical levers for inclusive development. They can unlock long-term capital for infrastructure, agriculture, climate change financing, and social impact,” he said. He cited examples such as Tanzania, where locally mobilised pension capital has already contributed significantly to national development projects.

Africa currently has 51 pension and social security funds registered with the Geneva-based International Social Security Association. The upcoming Summit will convene Chief Executive Officers and Chief Investment Officers of these funds, alongside global investors, development finance institutions, venture and private capital leaders, policymakers, and government officials from across the continent and beyond.

The proposed Development Fund for Africa marks a transformative step toward financial self- reliance — a future where Africans finance Africa’s growth, harnessing their own capital to build resilient economies and sustainable infrastructure.