Photo: Mjr74 / Wikimedia Commons, CC BY 4.0
Ethiopia is urging African pension and social security institutions to turn workers’ long-term savings into a stronger source of finance for the continent’s infrastructure.
Call for cross-border investment
National Bank of Ethiopia Governor Eyob Tekalign made the case at the inaugural African Social Security Summit, which opened in Addis Ababa on 29 October.
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He called for closer cooperation between pension and social security institutions across Africa to mobilise domestic capital for economic transformation. The two-day summit is being held under the theme, “Harmonising Social Security Systems for Infrastructure and Economic Transformation in Africa”.
Tekalign said African institutions could pool resources and direct investment towards priority areas including energy, transport, affordable housing and digital infrastructure.
He also welcomed discussions around a proposed Africa Pension Infrastructure Fund, while stressing that stronger regulation and harmonised investment rules would be needed for responsible cross-border investment.
Protecting retirement savings
The governor’s intervention carried an important caution: infrastructure investment must not come at the expense of workers’ retirement security.
He said sound governance, transparency, prudent investment management and effective regulatory oversight were essential safeguards for pension assets. That point is critical because pension funds are entrusted with the savings of working people, including millions of African families relying on retirement income in later life.
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The proposal remains at the discussion stage. No fund launch, capital target or list of approved projects was announced in the available summit reporting.
Why it matters
African governments face a major challenge in financing roads, power systems, rail links, water networks and digital connectivity without taking on unsustainable external debt.
Pension and social security funds hold long-term savings that can be better suited than short-term finance to infrastructure projects with returns spread over decades. However, these investments require credible projects, robust protections for contributors and rules that give investors confidence across national borders.
The approach also fits a wider African Union push to expand Africa-led financing. At an AU infrastructure summit in 2025, leaders called for policy and regulatory changes that could unlock domestic institutional capital, including social security, pension, insurance and sovereign wealth assets.
For Black communities across Africa and the diaspora, the stakes are clear: the debate is about whether African savings can help build African-owned infrastructure, support jobs and trade, and reduce dependence on outside lenders — while protecting the pensions earned by workers.
From summit talk to delivery
The Addis Ababa summit brings together social security leaders alongside the African Union, UN Economic Commission for Africa, African Development Bank, AUDA-NEPAD, Africa Finance Corporation and other partners.
Its significance will depend on what follows the speeches: shared investment standards, viable project pipelines, independent oversight and investment vehicles that deliver returns without exposing pension holders to excessive risk.
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Tekalign urged governments, regulators, pension institutions and development partners to convert the discussions into practical commitments and durable partnerships.