The African Development Bank (AfDB) and the African Social Security Association (ASSA) have signed a landmark cooperation agreement aimed at mobilising Africa’s growing social security assets to finance strategic infrastructure projects and accelerate the continent’s economic transformation.
The agreement, signed on the sidelines of the AfDB Annual Meetings in Brazzaville on May 28, 2026, marks a significant step towards positioning Africa’s social security funds as key investors in the continent’s development agenda.
The partnership seeks to strengthen the financial sustainability of social security institutions while channeling long-term domestic capital into critical sectors such as transport, energy, digital connectivity, industry and agriculture.
ASSA Secretary General Meshach Bandawe and AfDB Director for Financial Sector Development Ahmed Attout signed the agreement in the presence of AfDB President Dr Sidi Ould Tah.
The two institutions said the collaboration will focus on enhancing the capacity of social security funds to participate effectively in large-scale infrastructure investments capable of generating sustainable returns for contributors while supporting economic growth.
The initiative comes at a time when African countries continue to grapple with significant infrastructure financing gaps despite increasing demand for modern transport networks, reliable energy systems, digital infrastructure and industrial development.
By leveraging the vast resources managed by social security funds, the partnership aims to create a new avenue for financing development projects that not only deliver economic returns but also contribute to job creation, poverty reduction and improved living standards across the continent.
Beyond investment mobilisation, the agreement places strong emphasis on strengthening social protection systems.
AfDB and ASSA will work together to expand coverage, particularly among populations that remain outside formal social security arrangements, while providing technical support to improve governance, operational efficiency and service delivery within the sector.
The partnership also seeks to encourage African countries to make greater use of domestic savings and local resources to finance development priorities, reducing dependence on external funding and enhancing economic resilience.
Analysts view the agreement as part of a broader push to unlock institutional capital for development at a time when governments are increasingly looking for innovative financing mechanisms to bridge infrastructure deficits and support sustainable growth.
Africa continues to invest heavily in roads, railways, airports, ports, power generation, telecommunications and agricultural value chains, sectors considered essential for strengthening regional integration and boosting intra-African trade under the continent’s economic development agenda.
Headquartered in Arusha, Tanzania, ASSA was established to foster cooperation among social security institutions across Africa.
The organisation provides a platform for member funds to exchange expertise and best practices in areas including policy development, investment management, technology adoption, service delivery and the expansion of social security coverage.
The agreement follows a recent resolution by the African Union Executive Committee of Ministers responsible for Infrastructure and Energy, which called for stronger support to ASSA and its efforts to deepen the role of social security institutions in Africa’s socio-economic development.
With African pension and social security funds managing billions of dollars in long-term savings, the AfDB-ASSA partnership is expected to strengthen the sector’s contribution to development financing while improving returns and benefits for millions of contributors across the continent.
