African pension funds look to Dubai to invest capital
In Africa, there has been the emergence of an ecosystem around pension funds.
A recent institutional investor study estimated that the 10 largest funds in Africa held a combined $310 billion in assets. This has transpired for a number of reasons, not the least of it being a shift in many of these countries switching from defined benefits to defined contribution schemes. In Botswana, for example, where the shift took place in 2001, there are more than 100 pension funds jostling for funds in a country that has a population of 2 million. The top 10 funds account for more than 80 per cent of the assets accumulated, a figure that is similar in other countries in the continent as well.
Yet, what is clear is that these countries have been very good at amassing capital rather than deploying it. In Ghana, for example, there are less than 50 companies that are listed and average daily volumes have shrunk in the last couple of years.
Read More: Khaleej Times
