Deploying Africa’s $250 billion pension fund assets into the oil and gas sector could help close the continent’s widening financing gap and accelerate infrastructure development, industry experts have said.

Speaking at the African Refiners and Distributors Association (ARDA) Week Conference in Cape Town, Rene Awambeng, Founder & Managing Partner at Premier Investment Solutions, urged African nations to recapitalise their over 1,000 financial institutions and 84 national development banks, and keep funds within the continent for energy projects requiring up to $200 billion annually.

Mobilising Domestic Capital

Awambeng cited Nigeria’s successful $300 million diaspora bond as proof of concept, calling for similar strategies to channel local resources into critical infrastructure.

“We cannot continue relying on foreign capital that comes with conditions misaligned with our long-term development goals. Africa’s pension funds provide a viable path to achieving energy security and national growth,”

he said.

Countries such as South Africa, Nigeria, Kenya, Morocco, Botswana, and Namibia control much of Africa’s pension reserves, but restrictive regulations and risk-averse investment policies have prevented large-scale deployment into infrastructure. Awambeng called for regulatory reforms to allow pension funds to directly support national economic priorities.

Strengthening Financial Institutions

Awambeng also noted that Africa’s financial sector remains underutilised, with many development banks lacking coordination and capitalisation to drive transformative projects.

Dele Kuti, Global Head of Energy & Infrastructure at Standard Bank Group, stressed the need for financial discipline, adequate equity contributions, realistic repayment timelines, and robust risk management. He warned against protracted funding processes that delay project execution.

Policy and Regional Cooperation

Anibor Kragha, Executive Secretary of ARDA, said mobilising domestic capital—including pension funds, insurance pools, and sovereign wealth funds worth over $4 trillion—was critical. He called for empowered regulators, removal of trade barriers, and innovative financing tools such as carbon credits, blended finance, and guarantees to attract investment.

Kragha also urged the creation of strategic fuel reserves, noting that most African countries have only a few days of supply, leaving them vulnerable to disruptions. He proposed national or regional stockholding frameworks supported by modest levies and robust reporting systems.