African institutional investor (pension funds and deposit and consignment funds) assets now exceed $230 billion. Yet less than 10% of pension funds is invested in domestic capital markets outside South Africa and Nigeria – and just 1.5% in infrastructure or alternatives. In Uganda, listed equities represent under 1% of institutional holdings despite pension assets equalling 12% of GDP. Most capital remains in short-term government securities due to regulatory ceilings, shallow markets, and high transaction costs. By contrast, pooled consortia of pension funds, insurers and sovereign wealth funds in Kenya and South Africa have mobilised $500 million for infrastructure in just three years. In Morocco, the Caisse de Dépôt et de Gestion demonstrates how deposit and consignment funds can serve as catalysts for local financing, channeling long-term savings into territorial development, SME financing, and strategic infrastructure projects. What will it take to truly maximise African domestic institutional capital?
Key Points
- Which market instruments can unlock institutional investment – green bonds, securitised infra, SME debt funds?
- How can pooled regional platforms and credit enhancements address scale and liquidity barriers?
- What reforms are needed to expand long-term allocations—without breaching solvency or return thresholds?