Invest pension funds in African economies - Arican Finance Corporation boss
African governments have been urged to reform pension fund regulations to encourage greater investment of the funds in African economies.
Speaking at the 12th Africa Debate in London on Wednesday (June 3, 2026), the President and Chief Executive Officer of the Africa Finance Corporation (AFC), Samaila Zubairu said existing capital charge regulations discouraged African financial institutions from investing within the continent while placing no equivalent burden on investments made abroad.
Addressing investors, government officials and development financiers at the event, he said Africa held about $4.4 trillion in domestic capital across pension funds, insurance companies, commercial banks and sovereign wealth funds, yet much of that money was invested outside the continent.
"Most of the capital is invested outside the continent," he said. "And when it is invested in the continent, it is invested in short-dated government paper, which does not work for any one of us."
Mr Zubairu argued that current regulations overstated the risks associated with investing in Africa.
"Africa is not as risky as the regulation implies. The empirical evidence is clear. But the behaviour has not changed," he said.
Investment rules
Mr Zubairu called on governments and pension regulators to review asset allocation rules and educate pension fund trustees and managers on the long-term benefits of investing in productive sectors of African economies.
He said investment decisions should balance safety and liquidity with economic growth and job creation.
"If you do not create jobs, the people you are managing the savings for will end up supporting their children. That is not a fair exchange for anybody," he stated.
Development projects
Mr Zubairu cited a number of projects supported by the AFC, including the Dangote refinery in Nigeria, which is expanding its capacity from 650,000 to 1.4 million barrels per day, Africa's largest fertiliser complex and the continent's largest copper smelter.
He also disclosed that the AFC had established a technology fund to support digital innovation across Africa and was developing a digital free zone in Nigeria, with plans to extend the model to other African countries.
"Some of the largest artificial intelligence users in the world today are in Africa," he said. "Some of the most innovative technologies on the African continent are a long way ahead of what we have here in the developed world."
Value addition
Mr Zubairu said Africa's engagement with international partners should place greater attention on value addition and industrial development.
"It can't be that we want to export more bauxite. It is to build aluminium refineries and aluminium smelters in Africa," he said.
He also called on African institutions to play a stronger role in financing development by directing more resources into infrastructure, private equity, venture capital and capital markets.
