Browsing: pension funds in Africa

The informal sector in Zimbabwe must show will and readiness to formalize. Vendors selling in Harare, Zimbabwe.

Zimbabwe’s dual economy, the formal and informal sectors, have become two distinct economies in Zimbabwe. With the former vulnerable to complex tax regimes and inconsistent monetary policies, the latter has no regard for both.

In some circles, the informal sector has been referred to as the grey economy, shadow economy, underground economy, parallel sector, and the cash economy.

  • Econet Life, an EcoCash Holdings Zimbabwe insurance unit, has launched a unique micro-pension fund product that allows people in the informal sector to save for retirement
  • The new product, called Dura/Isiphala Pension Fund, was launched in Kariba at the weekend and is expected to drive the uptake of pensions by workers in the informal sector
  • Meanwhile, on March 27, 2019, President of Nigeria Muhammadu Buhari launched the Micro Pension Plan (MPP) as part of his administration’s efforts to ensure that Nigerians who worked hard during their active years in service of their

The slow growth in the retirement benefits assets in Kenya in the second half of 2020 has been attributed to the Covid-19 pandemic.

Retirement Benefits Authority Chief Executive Officer Nzomo Mutuku revealed the sector only grew by 5.77 percent from Sh1.322 trillion to Sh1.398 trillion, owing to the pandemic which adversely affected the financial markets and the wider economy in the first half of last year.

Major consequences of the pandemic in the country include massive job losses, which put contribution towards retirement schemes under pressure.

Mutuku said that fund managers and approved issuers in the country held majority of the assets amounting to Sh1.286 trillion.

During the period under review, Mutuku revealed that schemes continued to invest heavily in government securities with the asset class accounting for 44 percent of the total assets under management.

This was followed by immovable property which accounted for 17 percent, investments in guaranteed …

Kenya has been appointed to chair the interim Africa Pension Supervisors Forum.

The newly created Africa Pension Supervisors Forum will be deputised by Nigeria alongside South Africa, Rwanda and Zambia as executive members.

According to a statement from the Retirement Benefits Authority, its CEO Mr Nzomo Mutuku shall chair the Interim Executive Committee of the Africa Pension Supervisors Forum encompassing CEOs of Pension Supervisors across member African countries.

Mr Mutuku was nominated by his colleagues from participating African countries who were attending the inaugural Africa Pension Supervisors Forum hosted by Kenya’s Retirement Benefits Authority at Nairobi’s Radisson Blu hotel on Monday and Tuesday this week (September 16-17 2109).

“The interim team will run for two years from January 2019 to December 2021- when the interim committee hands over to a new committee that shall be elected. The committee will come up with a legal framework on how the secretariat …