
The Private Sector Federation CEO, Nana Osei Bonsu, is calling for urgent reforms to Ghana’s third-tier pension system, arguing that it is failing to provide the long-term capital needed to grow the private sector.
According to him, the current structure of pension fund investment defeats the very purpose for which the third tier was introduced.
Speaking on JoyNews’ PM Express on Thursday, July 10, Osei Bonsu said cost and access to credit remain critical challenges for Ghanaian businesses, and that weak capital formation is at the heart of the problem.
“The cost of credit is high. Access to adequate capital formation is very low. Capital formation is difficult,” he said.
He explained that long-term capital, particularly from pension funds, is key to driving private sector growth.
But despite the potential of Ghana’s pension system to provide this funding, the capital pool remains insufficient.
“We now have a three-tier pension scheme, but we’re not accumulating enough capital. The private sector avenue, the Federation, was part of the consortium that developed and sought the three-tier pension scheme,” he revealed.
Osei Bonsu noted that under the design of the scheme, the third-tier pension was intended to channel more investment into the private sector, with about 35% to 36% of the total pension pool expected to be non-public sector driven.
However, he expressed concern that the third tier is not being used as originally intended.
“Most of them are investing in treasury bills and treasury bonds. That is not the private sector. That’s not the reason why the third tier was advocated for,” he stressed.