Dar es Salaam. The African Development Bank (AfDB) and the Africa Social Security Association (ASSA) have signed a partnership agreement aimed at mobilising domestic capital from pension and social security funds to finance development projects across Africa.
The agreement, formalised through a Letter of Intent on May 28 during the AfDB Group Annual Meetings in Brazzaville, Republic of the Congo, seeks to strengthen the role of institutional investors in long-term development financing.
A statement issued on Sunday said the document was signed by AfDB Director for Financial Sector Development Ahmed Attout and ASSA Secretary General Meshach Bandawe.
ASSA, a continental body representing pension and social security institutions, said the partnership would help reposition funds beyond their traditional role of safeguarding retirement savings.
“This collaboration reflects our collective commitment, together with our member institutions, to strengthening social security systems and ensuring they contribute meaningfully to Africa’s economic transformation agenda,” said Mr Bandawe.
He added that pension and social security funds should increasingly be seen as strategic investors capable of supporting infrastructure, regional integration and sustainable development.
“Social security institutions must evolve from being passive custodians of savings into active partners in development financing,” he said.
The partnership is aligned with the New African Financial Architecture for Development (NAFAD), endorsed under the Abidjan Consensus, which promotes greater use of domestic resources to finance Africa’s development priorities.
Mr Bandawe said the initiative would also help improve the sustainability of pension systems by expanding investment opportunities and strengthening returns.
“It is about unlocking Africa’s domestic capital base in a way that ensures both development impact and long-term financial sustainability for our members,” he said.
For his part, Mr Attout said the agreement comes at a time when African economies are seeking to reduce reliance on external financing and deepen domestic capital markets.
“Social security and pension institutions are critical actors in deepening local capital markets and supporting strategic investments across the continent,” he said.
He noted that the partnership would go beyond capital mobilisation to include technical cooperation, policy dialogue and capacity building between the two institutions.
“This is not only about financing, but also about building stronger systems, improving investment governance and ensuring better outcomes for beneficiaries,” Mr Attout said.
