Lessons from Ci-Gaba: West Africa’s First Pension-Backed Fund of Funds
Africa’s pension funds hold over US$700 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. This groundbreaking initiative has already mobilized pension commitments beyond expectations, embedding local ownership, reducing dependence on foreign capital, and creating a replicable model for frontier markets.
The Ci‑Gaba journey is more than a financial innovation; it is a story of economic sovereignty and systemic resilience. For policymakers, fund managers, and development partners, the lessons captured here provide a roadmap to unlock Africa’s pension capital for inclusive growth. For decades, African SMEs have been starved of patient, appropriately structured capital, while pension funds remained locked in conservative instruments. Ci‑Gaba flips this narrative by aligning pension trustees’ fiduciary responsibilities with SME growth needs. By denominating the fund in Ghanaian cedis, embedding a catalytic capital layer, and creating a permanent 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 GSG Impact , the RISA Fund of the UK Foreign Commonwealth and Development Office, and FMO Ventures provided catalytic capital, funding for design, fundraising and fund set-up , as well as credibility. Trustee training programs and embedded technical assistance facilities shifted mindsets, built confidence, and developed a portfolio of investment‑ready SME opportunities. Anchor investments by Stanbic Investment Management Services, Axis Pensions, Enterprise Trustees, FSD Africa Investments, and Small Foundation paved the way for other participants. These elements transformed skepticism into commitment, proving that ecosystem building and capacity development are as critical as capital itself.
Ci‑Gaba is not just Ghana’s story, it is Africa’s opportunity. With pension assets across the continent exceeding US$700 billion, the model offers a replicable framework for mobilizing domestic capital into productive sectors such as agribusiness, healthcare, clean energy, fintech, and women and youth‑led enterprises. By reducing dependence on foreign capital and embedding local ownership, Ci‑Gaba signals a new era of economic sovereignty. For governments, regulators, and fund managers, the lessons here are clear: blended finance, catalytic partnerships, and trustee empowerment can unlock Africa’s future.
Download the Executive Summary of the report to discover how Ghana’s pioneering model is reshaping the future of SME financing across Africa.
