Ghana’s ambitious 24-Hour Economy initiative has secured a groundbreaking partnership with the country’s largest pension fund to channel retirement savings into infrastructure development and small business financing, addressing the program’s estimated $4 billion funding gap through domestic capital mobilization.

With domestic pension assets projected to reach GHC 100 billion (≈$8.3 billion) by 2025, the government signed a memorandum of understanding with Petra Trust Company Limited, Ghana’s leading corporate pension trustee, to invest retirement funds through Ghana Infrastructure Investment Fund (GIIF) vehicles and specialized venture capital sub-funds targeting Small and Medium Enterprises (SMEs).

Presidential Adviser on 24-Hour Economy and Accelerated Export Development, Augustus Goosie Tanoh, revealed the strategic partnership represents a carefully structured approach to accessing patient capital while maintaining fiduciary responsibility to pension contributors.

“We signed an MOU with Petra, the largest pension fund, and the idea is that they will invest in some of the vehicles created by GIIF, the sub-funds, and also the venture capital sub-funds because their rules are very strict, because they have to protect their contributors,” Tanoh explained, emphasizing exit strategies and capital protection mechanisms.

The partnership addresses mounting questions about financing Ghana’s most ambitious economic transformation program without adding to the national debt burden. Tanoh, appointed by President John Dramani Mahama in January 2025 as Presidential Advisor for 24-Hour Economy and Accelerated Export Development, emphasized that access to finance remains the single greatest bottleneck for entrepreneurs and businesses seeking to participate in the program.

Petra Trust Company Limited is a leading corporate trustee authorized by the National Pensions Regulatory Authority (NPRA) to manage pension schemes serving thousands of employees from multinational organizations, government agencies, and private sector companies across Ghana.

The structured investment approach ensures pension funds flow into secure, regulated vehicles with predetermined exit mechanisms, allowing fund managers to generate returns while protecting contributor capital. This model aligns with international best practices where pension assets support long-term infrastructure development.

Allocating just 10 percent of these assets toward the 24-Hour Economy could unlock approximately US$800 million in stable, long-term capital, according to economic analysis supporting the initiative. Such funding proves well-suited for infrastructure projects including solar mini-grids, market logistics hubs, and workforce development programs.

Following the Petra Trust agreement, additional pension fund managers will participate in the financing structure, with emphasis on infrastructure investments and secure SME funding mechanisms. The approach leverages pension funds’ inherent long-term investment horizon, matching infrastructure projects requiring patient capital with predictable, steady returns over decades.

A facility will be extended to small and medium enterprises with concessional terms – interest rates below 10 percent and loan tenors of three to five years. A grant component of 20 to 30 percent will be used to de-risk investments and support SME capacity-building to make projects bankable, addressing critical financing gaps constraining business expansion.

The pension fund strategy represents one component of a broader financing architecture supporting the 24-Hour Economy. Ghana recently secured a financing agreement with the Arab Bank for Economic Development in Africa (BADEA) to unlock up to $500 million in support of the 24-Hour Economy initiative, diversifying funding sources across multiple development partners.

Regional precedents support the pension fund approach. South Africa and Nigeria successfully leverage pension assets for major infrastructure projects, demonstrating that retirement savings can support national development while generating appropriate returns for contributors.

Ghana’s model emphasizes structured sub-funds channeling investments into SMEs, providing affordable financing access while maintaining contributor fund safety through diversification and professional management. This dual focus on infrastructure and enterprise funding could accelerate industrial growth while addressing long-standing credit constraints affecting small businesses.

The initiative addresses structural challenges in Ghana’s financial sector, where high interest rates and collateral requirements traditionally exclude SMEs from formal credit markets. Venture capital sub-funds backed by pension assets create alternative financing pathways with more flexible terms aligned with business development needs.

Ghana’s pension fund assets increased by 39.5% in 2024 compared to the previous year, indicating growing domestic savings capacity that can support development financing. The growth trajectory provides expanding resources for strategic economic investments.

Infrastructure investments financed through pension-backed vehicles can reduce transport costs, improve energy reliability, and enhance trade competitiveness. Simultaneously, SMEs supported through venture sub-funds gain capacity to expand operations, increase employment, and contribute to round-the-clock economic activity central to the 24-Hour Economy vision.

The pension fund partnership reflects President Mahama’s emphasis on domestic resource mobilization for economic transformation. Rather than relying solely on external financing, the strategy harnesses Ghana’s growing retirement savings to fund national priorities while ensuring appropriate returns for contributors.

Economic analysts note that pension-backed infrastructure financing can generate multiplier effects across the economy. Improved power supply, transportation networks, and digital connectivity create enabling environments for business expansion, potentially justifying pension fund investments through broader economic growth.

Risk management remains paramount in the pension fund strategy. Structured investment vehicles operated through GIIF provide professional oversight, diversification, and regulatory compliance ensuring contributor protection. Exit mechanisms allow pension managers to adjust portfolio allocations based on market conditions and fund requirements.

The 24-Hour Economy initiative aims to transform Ghana’s economic structure by extending business operations beyond traditional hours, increasing productivity, and creating employment opportunities. Pension fund participation provides the patient capital necessary for infrastructure upgrades supporting extended operating schedules.

The ambition is to source funding across multiple windows; infrastructure, SME finance, agricultural value chains and human capital development, according to Tanoh’s comprehensive financing strategy. Pension funds represent one pillar of a diversified approach reducing dependence on any single funding source.

As Ghana seeks to achieve middle-income status through economic diversification, the pension fund strategy demonstrates innovative approaches to development financing. By aligning retirement savings with national development priorities, the initiative creates mutual benefits for contributors and the broader economy.

The success of pension fund participation in the 24-Hour Economy will depend on careful implementation, transparent governance, and sustained returns justifying investment decisions. Early results will influence broader adoption across Ghana’s pension industry and potential replication in other African markets pursuing similar development strategies.

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