Africa's first pensions, asset management data hub launched

The platform was unveiled in Nairobi during the Pan-African Fund Managers Association conference.

Africa’s pension and asset management industry oversees billions of dollars in assets, but for years it has operated without a single reliable source of comparable data.

That gap is now being addressed through the launch of the Africa Pensions and Asset Management Data Hub, also known as the APAM Data Hub. Industry leaders say the platform will support stronger investment decisions and enable evidence-based oversight by regulators.

“When we ask the various fund managers or the industry why there is not more investment in Africa, one of the first things they say is that it is because there is a dearth of data. Data is not publicly available, it is not standardised, so how do you compare apples with apples? I think this data hub will go a long way in assuaging those concerns,” said Zareena Camroodien, Chairperson of the Africa Pension Supervisors Association.

Experts say assets under management across the continent are expected to grow significantly in the coming years.

“We expect assets under management within Africa to grow very strongly. We have estimated in other studies that by 2040 those assets will be about 7 trillion dollars, which is quite significant, and we can now start shaping those assets to invest in Africa’s economic transformation,” said Dr Evans Osano, Chief Financial Markets Officer at FSD Africa.

Early findings from the data hub reveal wide disparities among African markets. These range from deep and mature markets such as South Africa, which holds about USD 206 billion in collective investment schemes, to countries with little or no licensed fund management activity, such as Mali, where assets are below one million dollars.

Kenya is among the continent’s more developed markets, with about USD 16.6 billion in pension assets and USD 2.6 billion in collective investment schemes. Even so, the industry remains highly concentrated and cautious in its investment strategies.

“There is a very conservative streak among fund managers, and for understandable reasons, because it is your and my pensions. We need to create investment instruments that allow asset managers to invest in a way that provides the security they need and assurance that they can get their money back,” said Mark Napier, CEO of Financial Sector Deepening Africa.

Stakeholders say the long-term goal of the data hub is to mobilise Africa’s growing pool of institutional capital and ensure it is invested productively within the continent to support long-term development, infrastructure and climate financing.