Zablon Mlawasi’s contribution to Pension Stories explores the potential for alternative investments to generate financial returns while supporting economic development. His perspective connects pension fund investment decisions with tangible outcomes for businesses, workers and communities.

Private equity and venture capital can provide finance that helps small and medium-sized enterprises grow and create employment. For pension funds, these investments offer an opportunity to pursue long-term returns while contributing to the productive economy.

According to the AVCA 2023 research cited for this story, private equity and venture capital-backed companies in Africa created over 3.2 million direct jobs. Separately, IFC portfolio companies in Sub-Saharan Africa supported 1.5 million jobs in 2022, illustrating the employment outcomes associated with investment in businesses across the region.

Behind these figures are businesses gaining the resources to expand and people accessing employment. Pension fund participation in alternative investments can connect retirement savings with these wider community outcomes, bringing financial performance and social impact into the same investment conversation.