Chief Executive Officer of GoldBod, Sammy Gyamfi, has called for a fundamental shift in Ghana’s pension investment strategy, urging policymakers to channel a greater share of pension assets into gold and other mineral-backed ventures.

According to him, Ghana’s primary pension fund continues to yield near-negative real returns, eroding the value of contributors’ savings over time. He attributed this to what he described as an “overdependence on unproductive ventures” that fail to generate meaningful profits. In contrast, foreign pension funds, particularly in countries with rich mineral deposits, have successfully leveraged natural resources such as gold to deliver stable and competitive returns for their retirees.

Why Gold?

Mr. Gyamfi’s argument is rooted in both economic history and market realities. Gold has long been recognized as a hedge against inflation and currency depreciation, qualities that are particularly relevant in Ghana’s current economic climate where inflation remains high and the cedi continues to face pressure.

“Ghana sits on immense mineral wealth, yet our pension funds are not actively benefiting from it. We should be asking why foreign pension funds profit from our gold while our workers retire on meager savings,” Gyamfi argued.

Economists note that gold prices have shown resilience in times of global uncertainty, often climbing when other asset classes falter. By integrating gold into pension portfolios, Ghana could insulate its pensioners from economic shocks while tapping into the country’s comparative advantage.

Risks and Realities

However, while the proposal is bold, it is not without risks. Pension funds typically prioritize security and liquidity, ensuring that retirees can access their savings when needed. Mining investments, although lucrative, carry exposure to global price volatility, operational risks, and governance concerns.

Financial analysts caution that any shift must be carefully managed with strong oversight and diversification strategies. “It’s not just about investing in gold—it’s about structuring the investment in a way that balances risk and return. Pension funds can’t gamble with people’s futures,” one investment consultant told this paper.

Broader Debate on Pension Sustainability

Mr. Gyamfi’s call comes at a time of growing unease among contributors about the sustainability of Ghana’s pension system. With rising living costs and limited returns, many workers fear that their pensions will not be adequate to sustain them through retirement. Labor unions have repeatedly petitioned government and the National Pensions Regulatory Authority (NPRA) to reform the system, citing concerns over transparency, low yields, and poor accountability in fund management.

By advocating for a reorientation toward gold, Gyamfi is not only pushing for higher returns but also sparking a broader debate on whether Ghana is fully maximizing its natural resources to secure the welfare of its people.

The Way Forward

If Ghana were to adopt a gold-backed pension strategy, it would need a carefully designed framework, involving partnerships with credible mining firms, strict governance rules, and mechanisms to shield contributors from commodity market fluctuations.

For now, Gyamfi’s proposal has opened up a critical conversation—should Ghana continue on its current trajectory of low-yield pension investments, or leverage its mineral wealth to secure retirees’ futures?

As the debate unfolds, one fact remains: without significant reforms, Ghana’s pension system risks leaving many workers vulnerable in their old age.