More than 80 percent of Africa’s workforce operates outside formal employment, making regular contributions difficult. Irregular payments and low savings levels further undermine the adequacy of contributory schemes.
Africa is facing rising old-age poverty and a widening infrastructure funding gap as pension savings continue to underperform, a new report warns, raising the prospect of a bleak future for millions of retirees unless urgent reforms are enacted.
The study by FSD Africa, in partnership with UK International Development and the Africa Pension Supervisors Association (APSA), finds that pension systems across the continent remain constrained by limited growth. The main factors are the dominance of the informal economy, where most workers lack pension cover, the weak portability of benefits for cross-border workers, and persistent inclusion challenges.
