Unlocking Domestic Pension Capital in Africa for SMEs : Lessons from Ci Gaba Report
Africa’s pension funds hold over US$600 billion in untapped assets, yet less than 10% is invested in productive sectors and in Ghana, less than 1% is invested in alternative vehicles that could transform the continent’s SMEs, the backbone of the economy. Across Africa, SMEs represent 92% of enterprises and employ 80% of the workforce; the financing gap stands at a staggering US$331 billion. Ci‑Gaba is West Africa’s first pension‑backed fund‑of‑funds, a bold experiment in blended finance that is rewriting the rules of domestic capital mobilisation. Sponsored by Impact Investing Ghana and managed by Savannah Impact Advisory, this groundbreaking initiative has reached a first close and launched, embedding local ownership and creating a replicable model for frontier markets.
The report captures lessons from the design and launch and presents a framework for domestic capital mobilisation which identifies the conditions needed for domestic institutional capital to flow into productive investment and offers entry points for pensions, regulators, foundations, catalytic capital providers, and investment vehicle designers. It is the first in a series of publications and workshops by Impact Investing Ghana on unlocking domestic capital in Africa.
The Ci‑Gaba journey is more than a financial innovation; it is a demonstration of what is possible. By denominating the fund in Ghanaian cedis, embedding a catalytic capital layer and creating an open-ended capital vehicle, Ci‑Gaba demonstrates how local realities can shape global‑standard solutions. This is not just about financing, it is about designing vehicles that respect domestic contexts while meeting international benchmarks.
The fund’s success is anchored in collaboration.
- Strategic partnerships with a Ghanaian pensions collaborative informed the initial design.
- GSG Impact, the RISA Fund of the UK Foreign Commonwealth and Development Office, FMO through its Ventures and Market Creation programmes, Ford Foundation, Japan’s Ministry of Foreign Affairs, and the Argidius Foundation provided catalytic grant funding for design, fundraising, ecosystem building and fund set-up.
- Pension trustee training programs and embedded technical assistance facilities shifted mindsets, built confidence, and developed a portfolio of investment‑ready SME opportunities.
- Capital to de-risk from the catalytic investors and collaboration on structure, due diligence, and processes paved the way for other participants.
- Anchor investments by Stanbic Investment Management Services, Axis Pensions, Enterprise Trustees, FSD Africa Investments, and Small Foundation propelled the fund to a first close.
These elements transformed scepticism into commitment, proving that ecosystem building and capacity development are as critical as capital itself. For policymakers, fund managers, and development partners, the lessons captured here provide a roadmap to unlock Africa’s pension capital for inclusive growth.
Download the Executive Summary of the report to discover how Ghana’s pioneering model can reshape the future of SME financing across Africa.
