Government says investment is one of the controversial areas of pension administration most countries in Africa are facing.
And World Bank Lead Economist Anita Schwarz said pension systems in Africa were as mature as civil service pensions systems anywhere else in the world and were starting to put strains on government finances.
Labour and Social Security Minister Fackson Shamenda says most African countries face conflicts on whether to focus on socially or economically targeted investments and on offshore or local investments among other options.
Mr. Shamenda cautioned that if not handled properly, transition arrangements in pension reforms had the danger of not providing for eligible members their benefits.
“Transitional arrangements and accrued rights require special considerations especially during reforms because there is a danger of not providing for members who are eligible for benefits,” he said.
Mr. Shamenda said this in Livingstone today during the opening of the Coherent Pension Policy and Improved Pension delivery in Africa workshop organized by the World Bank in collaboration with the National Pension Scheme Authority (NAPSA).
The two-day workshop has drawn participants from Zambia, Zimbabwe, Democratic Republic of Congo, Ghana, Kenya, Tanzania and South Africa.
He stressed the importance of carefully analyzing the existing legislation before making changes to ensure beneficiaries were not disadvantaged.
And World Bank Lead Economist Anita Schwarz said pension systems in Africa were as mature as civil service pensions systems anywhere else in the world and were starting to put strains on government finances.
Ms Schwarz noted that coverage among the working population was relatively low and resulted in most elderly people not being provided with old age security through the state.
“Most elderly people are not provided with old age security through the state and have to rely on family support which may or may not be forthcoming,” she said.
She said it would be a great challenge to think about designing systems which would prove to be attractive and beneficial for the working age population.
