Financing long-term infrastructure post-COVID-19: is pension funds an option for Africa?

The new global pandemic of COVID-19 has created severe financial challenges globally, forcing several countries in Africa to suspend projects that support the economic development goals. Looking at this pandemic as an exogenous shock to the existing institutions of different countries, it provides a golden opportunity to examine how countries in Africa can emerge strongly out of this financial strain and sustain infrastructure financing through alternative financial means. Through multi-method approaches comprising evidence from World Bank PPI Database and OECD global pension statistical support, desk-based and documentary research, the study reviews the existing literature and industry practices in relation to pension funds’ investment in infrastructure both in developed and developing economies, focusing attention strictly on the barriers, opportunities and solutions to improving the slow growth in Africa. Recommendations include expert analyses contextualised within the thematic framing of guarantee and risk absorbing approaches; availability of investable infrastructure aligning with investors’ benchmarks; suitable infrastructure investment vehicle and flexible exit strategy.