Sigma Pensions CEO talks on mobilising pension funds for development

At the ongoing Africa Investment Forum in South Africa, Dave Uduanu, the CEO of Sigma Pensions, discussed the potential of mobilising pension funds for infrastructure development in Africa. The discussion focused on the challenges faced by pension funds in investing in infrastructure projects and the need for collaboration with international investors to bridge the gap. Uduanu highlighted that while the pension sector in Africa is estimated at 600 billion US dollars, less than 1% of it is currently invested in infrastructure. This presents a significant opportunity for leveraging pension funds to drive development on the continent. One of the key takeaways from the panel discussion was the eagerness of international investors to partner with domestic pension funds in Africa for infrastructure investments. Uduanu emphasized the importance of addressing the lack of bankable projects as a major hindrance to pension fund deployment in Africa. He suggested a shift towards issuing revenue bonds tied to specific projects, which would attract pension fund investments and ensure sustainable financing for infrastructure development. The launch of the African Investment Forum was hailed as a game changer for the continent, providing a platform to showcase bankable projects and facilitate partnerships between investors and project developers. However, Uduanu noted the absence of many pension funds at the forum and called for greater participation in future events to enhance collaboration between the buy side and sell side stakeholders. Overall, the discussion highlighted the potential of harnessing domestic savings, particularly pension funds, to drive infrastructure development in Africa. By bridging the gap between investors and project developers, the continent can unlock new opportunities for sustainable growth and economic prosperity.