Stanbic Bank Calls for Capacity Building to Unlock Pension Capital for Mining Sector

Speaking during a panel discussion on the topic “Capital for Growth: Navigating the Challenges of Financing Mining Projects in West Africa” at the 18th West African Mining and Power Expo (WAMPEX), Mr. Bentsi-Enchill noted that although regulatory reforms have opened up opportunities for pension funds to invest beyond traditional instruments, the technical know-how required to make such investment decisions remains limited.

“There’s a growing recognition that pension funds hold the potential to be a vital source of long-term capital for sectors like mining. However, without the right level of expertise and sector-specific risk assessment skills among fund managers, this capital will remain untapped. Upskilling is, therefore, not just necessary, it is critical,” he said.

He referenced recent reforms by the National Pensions Regulatory Authority (NPRA), which have increased the allowable allocation of pension funds into venture capital, private equity and real estate from under 5% to 25%. Despite this progressive move, Mr. Bentsi-Enchill noted that actual allocations remain below 1%, a signal that market participants lack the confidence, understanding and mindset needed to take advantage of these reforms.

“Even with increased allocation thresholds, the market isn’t responding. Why? I think that just speaks to the issue around capacity. If you have fund managers who don't understand a sector or industry, it doesn't matter what's going on there, you can't make the appropriate risk evaluation and decisions to take advantage of compelling investment opportunities. So, we must address this as a capacity gap,” he added.

Mr. Bentsi-Enchill argued that while regulatory changes are important, they must be matched with deliberate efforts to build the competence of fund managers and institutional investors. “It’s not enough to change policies. If decision-makers don’t understand how to assess risks or structure deals in the mining space, they’ll avoid it altogether. We must invest in training, exposure, and support systems that enable confidence and competence,” he noted.

The session was part of a broader dialogue at WAMPOC 2025 aimed at strengthening regional cooperation and innovative financing mechanisms to support the growth of West Africa’s extractives sector.

Picture: Kobby Bentsi-Enchill, Head, Investment Banking, Corporate and Investment Banking - Stanbic Bank Ghana