Africa invests less than one percent of its pension fund assets, estimated at more than $2 trillion, within the continent, highlighting the gap between available domestic capital and the financing needed to accelerate economic development.
Ralph Gonsalves, former Prime Minister of St Vincent and the Grenadines, disclosed this during a panel session at the Afreximbank Creative Africa Nexus (CANEX) WKND 2026 in Lagos, where he called for stronger economic cooperation among Africa, the Caribbean and people of African descent worldwide.
Gonsalves argued that the concept of Global Africa must move beyond a political and sociocultural identity to become an economic force supported by investment and deeper financial integration.
He said the continent had substantial financial resources that could be mobilised to support its development but was not adequately deploying them within its own economies.
‘You have in Africa the pension funds in excess of two trillion dollars. But yes, less than one percent of those pension funds are invested in Africa,’ he said. His remarks highlight the challenge of mobilising domestic institutional capital for development at a time when African countries continue to face significant infrastructure, industrialisation and business financing gaps.
Pension funds represent a potentially significant source of long-term financing because of their investment horizons and capacity to support infrastructure, productive enterprises and other long-term assets.
However, Gonsalves argued that Africa’s economic relationship with its diaspora and the Caribbean should be strengthened through practical investment rather than remaining largely centred on shared history, identity and cultural connections.
He described Global Africa as fundamentally a political and sociocultural construct that must be given a material economic foundation.
The former prime minister’s position came during a discussion on the historical connections between Africa, the Caribbean and other communities of African descent, with participants calling for greater cooperation to address common development challenges.
Former Nigerian President Olusegun Obasanjo also stressed the importance of recognising the shared interests of Africans and people of African descent, arguing that historical divisions created by human greed should give way to unity around common prosperity.
The discussion further examined how Africa could strengthen its economic position by improving cooperation, facilitating movement across borders and creating opportunities for people of African descent to contribute to the continent’s development.
Gonsalves’ remarks point to the need for African countries to build stronger investment connections across the continent and with the wider Global African community, particularly by directing more available financial resources towards productive economic ac