For the first time, pension funds across Africa are joining forces to pool domestic resources toward the continent’s development needs reducing reliance on traditional foreign aid and funding.
The initiative, dubbed the “Development Fund for Africa”, will be unveiled at the upcoming “$700 Billion in One Room” All Africa Pensions Summit, taking place from November 5–7, 2025, at the Munyonyo Convention Centre in Kampala, Uganda.
The summit is hosted by NSSF Uganda under the theme: “Pension Funds – Powering Africa’s Growth.” It aims to deepen Africa’s pool of patient capital and promote pension funds as catalysts for infrastructure, climate resilience, and inclusive economic growth.
Speaking ahead of the summit, key leaders in Africa’s pension sector emphasized the urgent need for innovative financing models, citing declining foreign aid and shifting global geopolitical priorities.
“Pension funds across Africa hold approximately $700 billion in assets under management. This is a major opportunity to fund our own economies—on our own terms—without the conditionalities often attached to foreign aid,” said Patrick Michael Ayota, Chairperson of the International Social Security Association (ISSA) East Africa Liaison Office and Managing Director of NSSF Uganda, East Africa’s largest pension fund.
Ayota stressed that traditional sources of development finance can no longer sustain the continent’s growing infrastructure demands. “The global landscape is changing. Africa must adapt by building sustainable, domestic financial ecosystems.”
According to the African Development Bank, Africa’s development goals require over $1.3 trillion annually, with significant financing gaps remaining unmet.
Leonard Zulu, United Nations Resident Coordinator for Uganda, echoed these sentiments, urging African governments and institutions to look inward.
“The traditional models of development cooperation are being redefined. Aid is no longer sufficient to address the scale and complexity of Africa’s challenges,” he said.
Zulu pointed out that 15 of Africa’s 20 traditional donor partners have reduced funding commitments. “We must mobilize domestic savings, tap into diaspora remittances, and develop blended financing models to reduce dependency and foster resilience.
He added that access to capital for small and medium enterprises (SMEs) must be a central focus, moving Africa from an aid-based to a trade-based growth model.
Meshach Bandawe, Secretary General of the Africa Social Security Association (ASSA), called on pension providers to take a proactive role in funding African infrastructure and social development.
“It is time African infrastructure needs are financed by Africans. Pension funds are increasingly recognized as key players in unlocking long-term capital for development—including agriculture, climate financing, and social impact projects,” he said.
Bandawe cited examples such as Tanzania, where local pension funds have successfully deployed capital toward national development initiatives.
Africa has 51 pension and social security funds, according to ISSA. The summit in Kampala aims to harness this collective financial muscle to create a pan-African development financing mechanism.
