Pension funds in sub-Saharan Africa

Nyang'oro, Owen; Njenga, Githinji

doi:10.35188/unu-wider/2022/229-4

Cited by 6 publications

(5 citation statements)

References 13 publications

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“…They recommend that countries should make pension policies that are geared towards institutionalizing savings. On the contrary, Nyang'oro and Njenga [38] examined pension fund in sub-Saharan Africa and found that the pension system is characterized by low participation, low income levels, low returns due to investments only in government securities, low asset under management and restrictive regulations. They propose that a targeted universal pension system (to be financed using public resources) should be instituted.…”

Section: The Intermediation Theory By Gurley and Shawmentioning

confidence: 99%

Pension Assets Investments in the Nigerian Economy

Olulu-Briggs¹

2023

Saudi J Econ Fin

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This study looked into pension assets investments and its impact in the Nigerian economy. The investments includes quarterly reports of corporate debt securities, government bond securities, mutual funds’ investments, money market instruments, private equity funds and real estate securities from 2004 – 2020, and was sourced from the statistics database of the National Pension Commission, the Central Bank of Nigeria and the World data bank. The statistical measures used to analyze the data are the descriptive test, Unit root test, Co-integration test, Vector error correction, Causality and Impulse response function. The outcome of the analysis show that the variables were stationary after first differences were taken; and were also co-integrated at 2 lags indicating that both short and long run equilibrium relationship exist among the variables. From the vector error correction model, previous years’ deviations from long run equilibrium had a 0.09% speed of adjustment; leading to a short run equilibrium. The Causality test reveal that changes in government bond securities lead to changes in real estate securities and changes in money market investments leads to changes in government bond securities. In addition, the impulse response demonstrates that a shock to the system produces more negative responses than positive ones. The study thus recommends that the pension industry should vigorously create more awareness on the importance of employee pension plan; develop more e-channels to help rake in investible funds as well as develop more innovative products to support diversification of pension fund in different assets classes among others.

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Section: The Intermediation Theory By Gurley and Shawmentioning

confidence: 99%

Pension Assets Investments in the Nigerian Economy

Olulu-Briggs¹

2023

Saudi J Econ Fin

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“…Regulatory changes in Nigeria, such as the Regulation of Pension Fund Assets in 2006, have allowed pension funds to increase assets under management National Pension Commission, 2006), reaching USD 32.3 billion in 2020(OECD, 2021b. Ghanaian pension funds have also grown steadily, accumulating USD 4.7 billion as of 2021, making Ghana the second-largest pension fund market in the region (Nyang`oro and Njenga, 2022;OECD, 2021b). The Nigerian Sovereign Wealth Authority had USD 3 billion in assets under management in 2021, the highest amount of any sovereign wealth fund in West Africa.…”

Section: The Allocation Of Sustainable Investments Is Skewed Towards ...mentioning

confidence: 99%

Africa's Development Dynamics 2023

2023

Africa’s Development Dynamics

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The annual flagship report Africa's Development Dynamics provides the latest information on economic policies on the African continent and in its five regions. It proposes a new narrative assessing Africa's economic, social and institutional performance in light of the targets set by the African Union's Agenda 2063. This 2023 edition explores how Africa can attract investments that offer the best balance between economic, social and environmental objectives. Africa's Development Dynamics is the product of a collaborative approach. It results from a strong partnership between the African Union Commission's Department of Economic Development, Trade, Tourism, Industry and Minerals and the OECD Development Centre, bringing together a team of academic researchers, economists, statisticians, and experts from Africa and other regions.The first two chapters explore the current investment landscape in Africa and recommend priority actions, offering lessons from across the continent and beyond. The next five chapters focus respectively on the five regions as defined by the Abuja Treaty: Southern, Central, East, North and West Africa. These chapters tailor policy recommendations to strategic areas in each region, covering natural ecosystems, renewable energy, climate finance and agri-food value chains.This edition draws on a wide range of data sources to analyse public, private, domestic and foreign sources of investments. These sources are complemented by primary data collected through an AUC/OECD online survey on investment risks, barriers and priorities linked to cross-border investments in African countries. The survey was administered from June to October 2022 to the networks of African business councils and the EU-Africa Business Forum, gathering responses from 58 African and non-African business representatives. Eight in-depth interviews with multinational investors that are members of the OECD Emerging Markets Network (EMnet) were also conducted to supplement the survey results.

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“…Au Nigéria, des changements réglementaires, notamment la réglementation des actifs des fonds de pension en 2006, ont permis à ceux-ci d'augmenter leur enveloppe d'actifs sous gestion National Pension Commission, 2006), qui atteignait ainsi 32.3 milliards USD en 2020 (OCDE, 2021b). Au Ghana, les fonds de pension ont également connu une croissance régulière, avec un cumul de 4.7 milliards USD en 2021, portant le pays au rang de deuxième marché de fonds de pension de la région (Nyang`oro et Njenga, 2022 ;OCDE, 2021b). La Nigerian Sovereign Wealth Authority (Fonds souverain nigérian) disposait en 2021 de 3 milliards USD d'actifs sous gestion, le montant le plus élevé de tous les fonds souverains d'Afrique de l'Ouest, suivie du Fonds souverain d'investissements stratégiques du Sénégal (FONSIS) et du Ghana Heritage Fund, à respectivement 0.8 et 0.7 milliard USD d'actifs sous gestion (SWFI, n.d.).…”

Section: Les Obstacles à La Monétisation Des éCosystèmes Naturelsunclassified

Investissements directs étrangers en faveur de nouveaux projets en provenance d’Afrique de l’Ouest, par région de destination, 2017-21, en millions USD

2023

Dynamiques Du Développement en Afrique

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Pension funds in sub-Saharan Africa

Cited by 6 publications

References 13 publications

Pension Assets Investments in the Nigerian Economy

Pension Assets Investments in the Nigerian Economy

Africa's Development Dynamics 2023

Investissements directs étrangers en faveur de nouveaux projets en provenance d’Afrique de l’Ouest, par région de destination, 2017-21, en millions USD

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