Govt chasing more pension millions

Forcing pension funds to invest more money in unlisted entities might help in the country’s unemployment battle, government believes.

31 January 2020 | Economics

… institutional investors, such as pension funds, should be encouraged to contribute to this national priority. – Kenneth Matomola, CEO: Namfisa

Jo-Maré Duddy – Government is looking for millions more in pension fund money to be poured into unlisted investments to boost economic growth and job creation in Namibia.

The chief executive officer of the Namibia Financial Institutions Supervisory Authority (Namfisa), Kenneth Matomola, yesterday said the watchdog is working on a proposal for government in this regard.

Currently regulation 13 of the Pension Funds Act stipulates that all pension funds in the country must invest a minimum of 1.75% and a maximum of 3.5% of the market value of its total assets in unlisted investments.

Matomola wouldn’t comment on speculation that government wants the ceiling lifted to between 5% and 7%. However, Namfisa received no instruction from government regarding the “floor” or minimum that it wants to be invested in unlisted investments in future, he said.

According to Matomola, Namfisa is putting the “final touches” on its proposal and will present government with its proposal “very soon”. He wouldn’t speculate on when the new requirements would be implemented.

Big bucks

At the end of June 2019, a total of N$1.64 billion of Namibians’ pension money was tied up in unlisted investments, Matomola said.

Most of this – nearly N$394 million or 24% - was invested in manufacturing ventures. Unlisted investments in renewable energy totalled about N$328 million or 20% of the N$1.64 billion.

All the other unlisted investments received less than 10% each of the total.

Commenting on the returns delivered by these unlisted investments, Matomola said each asset class has its own risks.

“The question is whether the pension fund achieved its targets. Yes, investors are getting a meaningful return,” he said.

‘Critical lessons’

Matomola said Namibia has learnt “critical lessons” with its various national development plans. These include that the country is plagued by inadequate investments and that positive growth rates do not translate into adequate employment creation opportunities.

Since the First National Development Plan (NDP1), actual growth in employment has mainly been below targets, he said. Namibia currently has its Fifth National Development Plan (NDP5), spanning from 2017/18 to 2021/22.

By the end of NDP5, Namibia’s unemployment rate should be 24.2%. The latest labour force survey by the Namibia Statistics Agency (NSA) showed unemployment in the country in 2018 was 33.4%.

“High unemployment remains a national concern, and the creation of employment opportunities is a national priority,” Matomola said.

“Hence, it has now become imperative to foster the stimulation of economic growth, thus institutional investors, such as pension funds, should be encouraged to contribute to this national priority,” he said.

[email protected]

Similar News


Plot prices in Keetmans nearly halve

14 hours ago | Economics

The Keetmanshoop municipality has dropped the price per plot in the new Brukharos extension to N$16 900 per plot for low-income earners to afford housing.The...

Employers should come to the party

14 hours ago | Economics

RUNDU – The chairperson of the Wages Commission, Marius Kudumo, says the voices of employers and their organisations have not been satisfactory at its recently...

IMF approves US$772 mln payment to Angola

3 days ago - 11 June 2021 | Economics

The International Monetary Fund's executive board has approved a disbursement to Angola of about US$772 million after completing a fifth review of the African oil...

Minimum wage discussions continue at Rundu

3 days ago - 11 June 2021 | Economics

The newly established Wage Commission is in Rundu to investigate the possibility of introducing a national minimum wage in the country.At a meeting held at...

South Africa posts modest growth in Q1

4 days ago - 10 June 2021 | Economics

South Africa's economy maintained a steady growth trajectory in the first quarter of this year ticking up by more than one percent compared to the...

IMF approves US$650 mln in aid for Senegal

5 days ago - 09 June 2021 | Economics

The International Monetary Fund (IMF) has approved US$650 million in aid to Senegal to support the West African country's Covid-19 recovery, it said in a...

US restricts visas over Cameroon conflict

5 days ago - 09 June 2021 | Economics

The United States on Monday announced visa restrictions on individuals accused of fuelling violence in western Cameroon, which has seen vicious fighting for four years...

OPEC sees oil stocks falling further

5 days ago - 09 June 2021 | Economics

The Organization of the Petroleum Exporting Countries (OPEC) and its allies expect oil inventories to fall further in the coming months, OPEC's secretary general said...

Import substitution the way to go

6 days ago - 08 June 2021 | Economics

PHILLEPUS UUSIKUTo ensure that the domestic economy revives on a long-term basis, import substitution, export promotion and investments should all be considered as feasible policy...

Cryptocurrencies show inflows after record outflows

6 days ago - 08 June 2021 | Economics

GERTRUDE CHAVEZ-DREYFUSSCryptocurrencies posted inflows last week after hitting record outflows the previous two, as investors took advantage of price declines in the market, data from...

Latest News

Starlile wins Winter Cup

14 hours ago | Sports

LIMBA MUPETAMIStarlile from the Okahandja Racing Club beat the likes of You Touch My Heart (second place) and Newton Spark (third place) to the finish.Starlile...

Bronze for Du Plooy

14 hours ago | Sports

Namibia’s triathlon champion Divan du Plooy took bronze at the just-ended African continental championship in Egypt.The Namibian was competing in the Under-23 category in Sharm...

Plot prices in Keetmans nearly...

14 hours ago | Economics

The Keetmanshoop municipality has dropped the price per plot in the new Brukharos extension to N$16 900 per plot for low-income earners to afford housing.The...

President too quiet in crisis...

14 hours ago | Health

STAFF REPORTERWINDHOEKFormer health minister Dr Richard Kamwi is among those who believe that President Hage Geingob’s silence, as the country endures its worst wave of...

Covid-19: Six SA tourists die...

14 hours ago | Health

NEWS24JOHANNESBURGSix elderly tourists died from Covid-19 after 37 out of 40 travellers on a bus trip in Namibia tested positive for the coronavirus.According to Netwerk24,...

Covid-19’s impact on sports

14 hours ago | Sports

Limba MupetamiThe effects of Covid-19 continue to flow through Namibia’s health, educational, financial, and commercial institutions and the sport sector is no different.Matches and competitions...

Won’t do it - Kanalelo

14 hours ago | Sports

KickOffThe former Mamelodi Sundowns goalkeeper Fillemon ‘Ronnie’ Kanalelo worked at both Bloemfontein Celtic and Maritzburg United as a keeper trainer, and had his last coaching...

SA govt sells majority stake...

14 hours ago | Business

Nqobile Dludla - The South African government is selling a 51% stake in South African Airways (SAA) to Takatso consortium, which will initially commit more...

EDITORIAL: President must address the...

14 hours ago | Opinion

The clarion calls for President Geingob to crawl from under his rock and provide leadership insofar as the deadly surge in Covid-19 infections is concerned...

Load More