Kenny Fihla has called for a major rethink of how pension funds are invested across Africa, arguing that current policies are limiting economic growth and reducing potential returns.
Speaking in an interview on The Point of View with Bernard Avle, the Absa Group CEO said many pension fund frameworks overly restrict where funds can be invested, with significant portions directed outside the continent.
He warned that this approach reduces the amount of capital available for productive sectors within African economies, ultimately slowing development.
While acknowledging the importance of safeguarding pension savings and meeting long-term obligations, Mr Fihla stressed that the current system is not delivering optimal outcomes.
He explained that reforms are needed to allow pension funds to play a stronger role in financing critical sectors that can drive sustainable growth.
Among the priority areas he highlighted were infrastructure development, where investments can unlock broader economic opportunities, and logistics, which he said is essential for efficient supply chains and trade.
He also pointed to mining and mineral processing as key sectors that require long-term capital, particularly as global demand for critical minerals rises.
Mr Fihla further urged African countries to invest more in port operations to take advantage of shifting global trade dynamics, as well as in high-tech industries such as artificial intelligence and data infrastructure.
According to him, aligning pension fund policies with these sectors would not only boost returns for contributors but also accelerate Africa’s industrialisation and economic transformation.
