Malawi pension assets double amid Africa's $420 bn pension boom

Malawi’s pension industry posted its strongest performance on record in 2025, with total assets more than doubling to K8.4 trillion and investment income soaring 411 % to K5 trillion, delivering an 84 % return that outpaced inflation. Membership in the National Pension Scheme rose 10.4 % to 712,354 workers, but employer contribution arrears increased sharply to K144.5 billion, prompting the regulator to create a dedicated Pension Compliance and Support Department. The sector’s growth is being hampered by foreign‑exchange shortages, persistent inflation and high borrowing costs, which many employers cite as reasons for delayed contributions.

Across the continent, pension assets under management have now exceeded $420 billion, positioning Africa’s pension funds as a major source of long‑term domestic capital for infrastructure, government securities and corporate financing. Bank of Ghana Governor Johnson Pandit Asiama emphasized that these funds can provide patient capital to support sustainable economic development, but warned that stable macro‑economic policies, especially low inflation, are essential to preserve retirees’ purchasing power and unlock the sector’s developmental potential.