African pension funds, which exceed $2 trillion in total assets, invest less than 1% of this capital locally, according to Ralph Gonsalves, former Prime Minister of St. Vincent and the Grenadines. He made this statement during a panel discussion at the Afreximbank Creative Africa Nexus (CANEX) WKND 2026 in Lagos, where he emphasized the importance of fostering economic cooperation among Africa, the Caribbean, and the global African diaspora.
Gonsalves argued that the idea of Global Africa should evolve beyond its political and sociocultural dimensions to become an economic powerhouse. He noted that while Africa possesses significant financial resources, these funds are not being sufficiently utilized 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 stated.
His remarks highlight a critical challenge for the continent: mobilizing domestic institutional capital to address pressing needs in infrastructure, industrialization, and business financing. Pension funds, which offer long-term financing potential, could substantially contribute to these areas if directed towards local investments.
In addition to Gonsalves, former Nigerian President Olusegun Obasanjo underscored the importance of recognizing shared interests among Africans and people of African descent. He called for unity focused on common prosperity, suggesting that historical divisions have been largely propelled by greed and should be overcome.
The panel explored ways to strengthen Africa’s economic standing by enhancing cooperation and easing movement across borders. Participants discussed opportunities for individuals of African descent to contribute meaningfully to the continent’s development.
Gonsalves’ comments suggest a pressing need for African countries to foster stronger investment links, both within the continent and with the broader Global African community, particularly by channeling more financial resources into productive economic ventures.
