Terkper proposes use of pension funds to finance local industries through GSE

The Senior Presidential Advisor on the Economy, Mr Seth Terkper, has proposed that the country’s pension funds be channelled into financing local industries through the Ghana Stock Exchange (GSE), with safeguards to protect contributors affected by recent debt restructuring.

Speaking at the opening session of the third Kwahu Business Forum on April 3, 2026, at the Kwahu Convention Centre in Mpraeso, Mr Terkper said long-term corporate, municipal and build operate and transfer bonds could be used to raise capital for manufacturing and infrastructure.

He explained that these instruments should be tradable on the Ghana Stock Exchange and backed by clearly defined projects.

“We must plan, pilot and launch long-term financing through instruments such as corporate, municipal, joint venture, build operate and transfer and other strategic instruments that satisfy our desire for long-term capital, both equity and loans,” he told delegates. “And this is where the Ghana Stock Exchange comes in.”

Mr Terkper said pension funds could play a leading role, noting that they had previously supported the government bond market before the extension of the Domestic Debt Exchange Programme to pension funds in July 2023 reduced their holdings.

He stressed that any use of pension funds must be tied to specific projects with ring-fenced revenue streams. He cited the financing of Terminal 3 at Accra  International Airport as an example, where Ghana Airports Company Limited raised funds using its own revenue without a government guarantee.

“We can borrow from an initiative such as the one used for building Terminal 3, to ring fence airport tax, which became the source of funding,” he said.

He also referred to the Tema port expansion as another example of project-based financing.

Mr Terkper pledged to return to the forum in 2027 with a detailed proposal ready for implementation. He said discussions had already begun with the leadership of the Ghana Stock Exchange.

The Chief of Staff, Mr Julius Debrah, in his address, said Ghana must shift from a trade driven economy to one centred on manufacturing. Speaking at the same event on April 3, he said the country could not continue exporting raw materials while importing finished goods.

“Ghana must move beyond commerce and become a manufacturing hub,” he said. “We cannot continue to produce cocoa and import chocolate, grow food and import what we can process locally, or export raw materials and import finished products.”

Mr Debrah linked the need for industrial growth to rising youth unemployment. He said young people require access to jobs, skills and opportunities for ownership.

He called for stronger alignment between government and the private sector, stating that both sides must work together to drive economic transformation.

Dr Goosie Tanoh, Presidential Advisor on the 24 Hour Economy and Accelerated Export Development, said Ghana spent nearly GH¢39 billion on food imports in 2024. He cited figures he attributed to the Ghana Statistical Service.

“Every container that arrives is a job we did not create and foreign exchange we did not keep,” he said.

Dr Tanoh added that more than 80 per cent of Ghana’s exports remain concentrated in gold, crude oil and cocoa beans. He noted that the structure of exports has seen little change over several decades.

He announced plans for a Kwahu Food and Beverage Park to support local production and processing, and invited investors to participate.

He also outlined the Volta Economic Corridor project, which is expected to run from Tema through Akosombo and the Afram Plains to Tamale. He said the initiative includes plans for power generation and transport systems to reduce production and logistics costs. The figures cited are based on government estimates as presented at the forum.

Mr Kobla Nalate, Executive Director for Retail and Business Banking at Absa Bank Ghana, said on April 3 that lending rates had declined, allowing banks to offer credit to businesses at between 12 and 14 per cent.

“Today, interest rates are between 8 to 12 per cent. On the back of that, we can lend to businesses in similar ranges, around 12, 13 or 14 per cent,” he said.

He said the bank was ready to support viable business proposals and encouraged entrepreneurs to take advantage of the current conditions.

The third Kwahu Easter Business Forum, which opened on April 3, has brought together government officials, investors, business leaders and entrepreneurs from across the country.

President John Dramani Mahama is expected to attend a presidential dinner on April 4 and address the main programme. The Governor of the Bank of Ghana is also scheduled to meet banking sector leaders.

In a welcome address, the Eastern Regional Minister, Ms Rita Akosua Adjei Awatey, invited investors to consider the region for business opportunities. She announced plans for an Expo 2026 investment event later in the year.

The forum will run until April 5, with panel discussions, exhibitions and networking sessions continuing over the weekend.