Industry experts say Africa’s $250 billion pension fund assets could help close the financing gap in oil and gas, as traditional foreign lenders retreat from fossil fuel projects.

At the ARDA Week Conference in Cape Town, Rene Awambeng of Premier Investment Solutions stressed that redirecting pension savings into energy infrastructure would boost development and reduce dependence on foreign capital. He cited Nigeria’s $300 million diaspora bond as proof that local financing models can succeed.

Awambeng noted that countries like South Africa, Nigeria, Kenya, Morocco, Botswana and Namibia hold significant pension reserves, but regulatory limits and cautious investment policies prevent these funds from being used for large infrastructure. He also called for stronger capitalization of Africa’s 1,000+ financial institutions and 84 development banks to support energy growth.

Standard Bank’s Dele Kuti added that strong equity, realistic repayment terms and risk management are crucial for sustainable financing. ARDA’s Anibor Kragha emphasized mobilizing domestic resources, including pension, insurance, and sovereign wealth funds worth over $4 trillion, while also advocating for fuel reserves and freer trade across African borders.

Speakers agreed that without political will and regulatory reform, Africa risks continued vulnerability. They urged leaders to prioritize energy sovereignty to drive long-term resilience and prosperity.