Relief for pension funds after AfDB, ASS signed MoU to boost social security funds  across Africa

BRAZZAVILE: AFRICA’S pension funds are set to play a bigger role in financing major infrastructure projects after the African Development Bank (AfDB) and the Association of African Social Security Funds (ASSA) signed a landmark cooperation agreement aimed at unlocking long-term domestic capital for development across the continent.

The agreement, signed on May 28, 2026 on the sidelines of the AfDB Annual General Meeting in Brazzaville, Republic of Congo, seeks to strengthen the participation of social security funds in financing strategic economic and social infrastructure projects, while improving returns, sustainability, and member benefits.

The deal was signed by ASSA Secretary General Meshach Bandawe and AfDB Director for the Financial Sector Ahmed Attout, and witnessed by AfDB President Dr Sidi Ould Tah.

Under the partnership, the two institutions will focus on expanding technical capacity, strengthening investment frameworks, and enabling pension funds to safely deploy domestic resources into infrastructure projects expected to drive economic growth, create jobs, and reduce poverty across Africa.

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The initiative also aims to widen social protection coverage, ensuring more Africans are included in pension systems while improving efficiency and resilience within the sector.

Despite persistent infrastructure gaps across the continent, Africa continues to invest in key sectors including transport—roads, railways, ports and airports—energy, digital communications, industry, and agriculture, all critical to advancing regional trade integration under the African Union Social Agenda 2026.

Officials noted that the partnership is designed to bridge financing gaps while ensuring pension funds remain financially stable and capable of delivering better services and benefits to their members, as well as contributing more directly to national and continental development goals.