adminMartin Kadzere in JOHANNESBURG, South Africa
THE Insurance and Pension Commission has come up with infrastructure projects, which can been financed by the by pension funds, as part of efforts to stimulate the economy IPEC chairperson Mrs Lyn Mukonoweshuro told about 400 delegates attending the Zimbabwe Association Pension Funds 41st conference and annual general meeting in Johannesburg yesterday that pension funds should now focus on collaborations to undertake the projects and meet prescribed assets ratios.
The projects include water, Tokwe Mukosi in particular, energy, health and student accommodation for State universities. Zimbabwe has a huge recurrent budget, which leaves it with very little to spend on capital projects.
The country has also been unable to secure loans from multi-lateral financial institutions, major source and long term credit because of huge arrears.
The list of the infrastructural projects was done in consultations with the Ministry and Finance and Economic Development and the Infrastructure Development Bank of Zimbabwe, a State controlled financial institution.
“The list has already been circulated by the (IPEC) commissioner (Mrs Mpofu) to the industry,” said Mrs Mukonoweshuro. “But what we are saying to the ZAPF is that they must not look at doing it alone. They can come together (and) adopt a project. We are anticipating investment collaborations. Gone are the days each pension fund would want to do something alone.
“We feel this is part of the reason why you are not meeting prescribed assets ratios.”
AS at December 31 2015, none of the pension funds were not in compliance with the prescribed asset ratio. Mrs Mukonoweshuro said the conference, being held under the theme ‘The 21st Century Trustees – responsible, accountable and proactive’, should come up with a roadmap on how pension funds could “actively participate in the economy.”
On its part, the commission will come up with projects “which will enhance participation.”
Mrs Mukonoweshuro urged pension funds to explore alternative investments beyond property, equities and money markets.
World over, pension funds are increasingly playing an important role and if properly invested, they provide mechanism for economic development.
In addition, pension funds are increasingly looking at infrastructure investment.
In an interview, ZAPF chairman Mr Noel Zvareva said the association was actively interrogating the projects. He said while the ZAPF members have subscribed to the IDBZ’s $30 million for prepaid metering project and Kariba Hydro Power Station expansion project, the participation has not been to the “scale that is required.” Mr Zvareva said the projects made economic sense and the ZAPF members were prepared to participate.
The two day conference began yesterday and will end today.
One of the key issues, which came out from the deliberations was of upgrading proficiency level of trustees, to enable them to question some key decisions.
The commission is also coming up with a tool kit for the trustees to equip the trustees with adequate information to be able to make push backs when necessary.
This would help achieve robust conversations when a board of trustees are meeting. In addition, the IPEC has embarked on a training programme with Institute Insurance of Zimbabwe for trustees. On the other hand, IPEC is working on enhancing supervisory framework for effective supervision.
Online Reporter