Africa’s retirement fund industry at a crossroads to drive economic transformation

INDUSTRY leaders participating at the Institute of Retirement Funds Africa (IRFA) 2025 annual conference have said that Africa's retirement fund industry, which manages trillions of rand in collective assets, is on the brink of a transformative juncture.

- SIPHELELE DLUDLA

Central to this transformation is the urgent need to build member trust—a critical component that could unlock unprecedented economic growth across the continent. During a judicial-style panel discussion at the conference which ends on Tuesday, pension fund leaders grappled with the pressing issues surrounding strategic asset allocation and its potential to address Africa's notorious infrastructure deficit while also ensuring strong long-term returns for retirees.

The theme of the conference, articulated by IRFA President Geraldine Fowler, proclaimed that retirement funds have shifted from mere custodians of savings to becoming catalysers of social and economic transformation.

“Trust is the currency of our time. We are no longer just custodians of savings - we are catalysts of stability, architects of trust, and drivers of social and economic transformation,” Fowler said.

Fowler outlined the “African paradox” stating that by 2050, Africa will be home to one in four people globally, becoming the world’s youngest continent, yet it currently boasts the lowest retirement savings coverage anywhere.