Chairman of the United Bank for Africa (UBA) Plc Tony O. Elumelu has advised African governments to allocate 10 percent of Pension Funds to support the private sector especially entrepreneurs.
According to him, there is the need for African governments to develop a model that will make access to pension funds by the private sector easy.
Speaking at the Africapitalism programme at the University of Ghana Business School, Elumelu said Africa will derive a lot of benefits if portions of Pension Funds are channeled to support private sector
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While a cross section of the public argue that investing part of pension funds in the private sector is risky, he believes that the benefits that are likely to be derived from investing pension fund in the private sector outweigh the risk.
It will be profitable on the part of Africans if they could channel AID from developed countries into investment, he added.
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Mr.Elumelu called on the president and policy makers in Ghana to put in place effective mechanisms to make the business environment more conducive for the private sector.
Government was also applauded for the numerous tax cuts to support the private sector.
This development coupled with support for the Small and Medium-Scale Enterprises (SMEs) sector will fetch some huge gains, he noted
“When the private sector or entrepreneurs succeed, the individuals in the society also succeed. The youth today, stand a better chance to create their own jobs because of the availability of capital and the advent of the Internet, which has made it easy to access information from the World Wide Web in real time.
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The Vice Chancellor of the University of Ghana, Professor Ebenezer Oduro Owusu was also appreciative to be associated with the programme.
