By Ssenkayi Marvin Ezra
National Social Security Fund (NSSF) Managing Director Patrick Ayota has called for urgent action to mobilise Africa’s pension assets as a key source of financing for the continent’s infrastructure and development agenda, saying the time has come for Africa to “fund its own future.”
Ayota made the remarks while delivering the opening address at the All-Africa Pension Summit 2025, hosted by NSSF Uganda at Speke Resort, Munyonyo in Kampala. The summit was held under the theme “Connect. Collaborate. Power Africa’s Future.” The three-day summit brought together policymakers, investors, and thought leaders from across the continent to discuss how to unlock long-term capital and expand pension coverage.
“We stand at a critical juncture,” Ayota said. “Traditional development finance is declining, yet our infrastructure needs are soaring. The question isn’t whether we can fund our own growth — it’s how quickly we can mobilise the capital that’s already within our reach.”
Citing statistics from the African Development Bank, Ayota noted that Africa faces an annual financing gap of about USD 1.3 trillion, which most countries attempt to bridge through borrowing.
“To close this gap, we’ve relied too heavily on debt — both domestic and external,” he added. “But this growing debt burden is crowding out resources needed for social services, infrastructure, and economic development.”
Ayota pointed out that despite Africa having one of the lowest default rates in the world — around 1.4 percent — the continent continues to face disproportionately high borrowing costs, with the cost of borrowing across Africa averaging almost twice as much as in Asia.
“Across Sub-Saharan Africa, the cost of capital averages between 8 and 9 percent,” he said. “Compare that to Asia, where rates range from 4 to 5 percent. That gap represents a structural imbalance. Our economies are creditworthy, but we continue to pay a premium just to access financing.”
He urged African leaders and financial institutions to work together to address this imbalance and create a fairer, more enabling financial landscape.
“It’s time we corrected this structural challenge,” Ayota said. “We must build a financing ecosystem that reflects our growing creditworthiness and unlocks our potential for inclusive growth.”
Ayota emphasised that pension funds offer a powerful solution to Africa’s financing dilemma, describing them as “patient capital” ideally suited for long-term investment.
“Pensions hold patient capital — the perfect engine for Africa’s development,” he said. “With long-term investment horizons, steady cash flows, and built-in inflation protection, pension funds are uniquely positioned to drive sustainable growth. They don’t just deliver financial returns; they create jobs, strengthen communities, and power the continent’s future.”
His remarks set the tone for a summit focused on unlocking domestic capital, building partnerships, and promoting sustainable investments that respond to Africa’s social and economic realities.
Other speakers at the summit further echoed his call for greater African ownership of the continent’s development financing, with David Owino, Chair of the East Africa Venture Capital Association (EAVCA), noting that most private equity funds operating in Africa are still funded from outside the continent.
“Today, African investors contribute only about one percent of the private equity capital deployed here,” Owino said. “That means there are people who believe in Africa’s development more than Africans believe in themselves. We must change that mindset.”
The event was also attended by Hon. Betty Amongi, Uganda’s Minister of Gender, Labour, and Social Development, who underscored Uganda’s commitment to linking pension reform, labour equity, and social protection.
Over the next three days, the All-Africa Pension Summit 2025 will focus on unlocking long-term capital, expanding coverage, and advancing sustainability across Africa’s pension landscape — to position local institutions like NSSF Uganda at the heart of the continent’s growth story.