November 2020

03Nov

South Africa. Improving pension fund outcomes: a case for hedge funds

The much-debated “Regulation 28” restrictions imposed on retirement funds have made investors feel increasingly uncomfortable with having large exposure to either the local economy or the local stock market, despite its large exposure to rand-hedge stocks. Read also The savings and domestic investment paradox in Namibia Investors who are able to have greater direct offshore exposure in their investment portfolio may choose to exploit this flexibility in what is a very different state of affairs compared to many other points...

November 3, 2020
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02Nov

The savings and domestic investment paradox in Namibia

Namibia has been praised for having one of the largest savings pools in Africa, but the question of where such funds are invested and how they are benefiting Namibians still lingers. An analysis by The Namibian shows that since 2013, the asset base of non-banking institutions has been growing by an average of N$18 billion per year. Non-banking institutions are typically your pension funds, insurance companies, medical aid funds and friendly societies. In Namibia, they are regulated by Namibia Financial...

November 2, 2020
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October 2020

29Oct

Pension fund of S.Africa’s Eskom to invest $170 mln in U.S. projects

The pension fund of South Africa's indebted power utility Eskom plans to invest $170 million in private equity, infrastructure and real estate projects in the United States, the U.S. embassy in South Africa said on Wednesday. Eskom Pension and Provident Fund (EPPF) will invest $100 million in private equity managed by AlpInvest and $30 million in real estate managed by Metropolitan. The two companies are owned by U.S. private equity firm Carlyle Group. The remaining $40 million infrastructure investment will be...

October 29, 2020
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27Oct

South Africa. Lockdown forced many to dip into retirement savings to make ends meet – report

Nompu Sizela: Investment manager 10X released its third iteration of the Retirement Reality Report. Previous reports have highlighted the fact that the vast majority of working South Africans are not putting themselves in a position where they’ll be able to retire comfortably. And this year, with the economic impact of the Covid-19 pandemic, the outlook has further worsened. Read also Pension fund of S.Africa’s Eskom to invest $170 mln in U.S. projects Well, to tell us more I’m joined on the...

October 27, 2020
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August 2020

20Aug

A step closer to retirement reform in South Africa

By Jerry Botha, managing partner, and Jean Du Toit, head of tax technical at Tax Consulting South Africa As announced in the Budget Speech, any South African leaving in future will be subject to a much stricter process from 1 March 2021 onwards. But there was also a surprise 3-year lockup announcement for anyone with a South African pension fund, seeking to leave South Africa. This appears a sign of things to come for private pensions in South Africa....

August 20, 2020
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12Aug

Nigeria. Axa close to selling off pension fund arm

Axa Mansard, the Nigerian branch of French insurer Axa, is on the verge of finalizing the sell-off of its pension fund administrator. The company sold the 60% stake (representing nearly 2.1 billion shares) it holds in Axa Mansard Pension Ltd to Eustacia Limited, a member of investment group Verod. “This transaction marks a new step in AXA ́s broader strategy to focus on and grow our Life, Property & Casualty (P&C) and Health businesses across all its territories. The...

August 12, 2020
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06Aug

Kenya launches contributory pension scheme for government workers

Kenya launched a contributory pension scheme for hundreds of thousands of government workers on Wednesday, to prevent a crisis in the government’s finances from growing retirement obligations. The East African nation, which is facing reduced tax revenue due to the coronavirus crisis and ballooning debt repayments, has been spending 2.9% of its annual budget on pensions payments, the ministry of finance said, in a plan that does not involve contributions by individual workers. Read also Nigeria. Operators invest N55.25bn...

August 6, 2020
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July 2020

23Jul

World Bank makes recommendations to improve pensions coverage in Ghana

“If a new or existing informal sector scheme is given sole responsibility for covering the cocoa farmers, economies of scale could be achieved. This will allow outreach to other groups of informal sector workers in a financially viable manner”, the World Bank asserted in its pensions coverage in the informal sector Africa report for 2019. However the World Bank report indicated that the coverage of the elderly through contributory pension schemes is not expected to improve. But the state...

July 23, 2020
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16Jul

FLF Africa launches Financial Literacy for Coronavirus Alleviation programme

The Financial Literacy Foundation Africa has launched a Financial Literacy for Coronavirus Alleviation programme (FLICA) which aims to provide education on how to handle economic and financial hardships arising from the Covid-19 pandemic. This continental project will take place in all 46 countries in sub-Saharan Africa and aims to achieve financial independence for eight out of every ten individuals by 2030. “The strategic approach will address attitudinal and behavioral barriers to our goal of financial wellness through public education...

July 16, 2020
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13Jul

Older South Africans are taking their wealth and pensions offshore

In the current precarious economic climate, South African residents over age 55, who invested in retirement annuities (RAs), preservation funds or pensions, are increasingly transferring their investments to living annuities with offshore equity exposure. Read also Greece’s supreme court rules for reimbursement of pension cuts Claudia Mendes, international financial planner at Sable International, considers the argument for going offshore. South African residents find themselves investing in a country that has a concentration of resource stocks and a volatile currency. With...

July 13, 2020
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