NAPSA’s Investment Growth Sparks Mixed Reactions
The National Pension Scheme Authority (NAPSA) has reported a significant increase in its investment portfolio, from K54.5 billion in 2021 to K87.4 billion in 2024, representing a 60% growth over three years. While the government and the outgoing NAPSA Board of Trustees celebrate this achievement, critics have raised questions about the sustainability of this growth and the impact on contributors.
Minister of Labour and Social Security, Brenda Tambatamba, commended the board for its role in diversifying investments into high-impact projects like the Lusaka-Ndola Dual Carriageway and the Maamba Energy project. She described these ventures as aligning with President Hakainde Hichilema’s vision for Zambia’s economic transformation. However, skeptics argue that investments in large-scale infrastructure projects often carry significant risks, including cost overruns and delayed returns, which could ultimately affect pensioners’ security.
One area of contention is the K11 billion disbursed as part of partial withdrawals since the introduction of the pre-retirement lump sum in 2023. While this initiative has been praised for empowering citizens, some analysts warn that such withdrawals could strain the fund’s liquidity in the long term. Financial experts have called for greater transparency in assessing the long-term impact of these payouts on NAPSA’s capacity to meet future obligations.
The operationalization of high-profile assets, such as the Radisson Blu Mosi-oa-Tunya Resort in Livingstone, has been lauded as a step toward diversifying revenue streams. However, questions remain about whether these ventures prioritize profitability over public perception. Critics suggest that resources might have been better allocated to more stable investments that directly benefit contributors.
Furthermore, the closure of the provident fund program has drawn mixed reactions. While the government views it as a streamlining measure, labor unions and contributors have expressed concerns about the lack of consultation and clarity on how the closure will affect their retirement benefits. Some fear that these changes could erode trust in NAPSA’s governance.
Outgoing NAPSA Board Chairperson Shipango Muteto and Director General Muyangwa Muyengwa highlighted the board’s focus on accountability and transparency. Yet, critics argue that an exit report, while commendable, is insufficient to address lingering concerns about the fund’s governance and its alignment with the interests of ordinary Zambians. Calls for an independent audit of NAPSA’s investments have grown louder as stakeholders demand greater accountability.
As the outgoing board hands over to its successors, the focus will be on ensuring that NAPSA’s investments continue to yield sustainable returns without compromising contributors’ future security. While the government celebrates the growth of NAPSA’s portfolio, the onus will be on the new board to address these critical concerns and foster public trust in the pension system.
KUMWESU JAN 19, 2025
NAPSA’s Investment Growth Sparks Mixed Reactions
