Browsing: Pension funds

The Guide mainly covers three key areas – understanding the asset class and where it sits alongside other asset classes, why and how to invest in PEs and an overview of the benefits and risks of investing in PE.

The development of the guide was informed by a market study report that sought to investigate the low uptake of investment by pension schemes.

In Kenya, for instance, PE allocations by pension schemes account for only 0.08 per cent of the total industry assets under management. From a regulatory perspective, there are provisions allowing pensions to invest in PE funds across East Africa (Kenya, Uganda, Rwanda, Tanzania, and Ethiopia).

According to Kenya’s pension regulator, the Retirements Benefits Authority (RBA), though the country has had regulations that provide for diversification of pension funds away from traditional instruments, most pension schemes are still predominantly bond and stock investors.…

  • Tanzania has went through significant changes in its pension schemes over the past years
  • Pension funds have becomes a useful tool in the wake of the pandemic
  • Nigeria,Kenya, Namibia, Bostwana and Mauritius demonstrate serious activity in pension fund growth

Pension funds are now an instrumental tool in the economy across Africa that play a major role in building long-term finance and capital markets, through mobilization and allocation of stable and long-term savings to support investment, according to Making Finance Work for Africa. 

In a nutshell, according to Corporate Finance Institute, the pension fund is an endowment that accumulates capital to be paid out as a pension for employees when they retire at the end of their careers. 

In countries such as Tanzania, where pension funds are part of government lending, contributing at least 11.4 per cent of total investment by March 31, 2019, there is a glimpse of hope that