By Steven Godfrey Mkweteza
The country’s financial institutions regulator, Reserve Bank of Malawi(RBM), says it is impressed with the strides that have so far been recorded from the pension funds contributions in the country.
Director of administration and services for the country’s central bank, Lanjesi Sinoya disclosed this in Blantyre during life insurance and pension funds seminar organised by Lifeco holdings limited.
Sinoya said since the pension Act was initiated in 2011,the pension funds contributions have reached a total of MK2.4 trillion as of September 2023.
“This is very impressive indeed and huge growth as compared to the MK74 billion pension funds contributions the country recorded in 2011 when we started regulating the funds,” he said.
Sinoya said the central bank was more excited about how the pension sector was resilient in servicing the funds.
“However, there is still a huge task to do inorder to woo more players to contribute to the funds. Many employees and employers are still in the dark on the benefits of contributing to the funds. For example, only a total of 542 employers the whole country have contributed to the 2.4 trillion out of many employees that the country have,” he said.
According to him, the country has so far invested in huge power and energy sector, transport, construction and water sectors using the proceeds from the pension funds.
In a separate interview, board chairman for Lifeco holdings limited, Lyton Chithambo, said his insurance company organised the seminar to equip its clients on the clauses of the revised pension Act of 2023.
“This will surely go towards improving compliance levels as the clients will be able to make a decision based on the right information shared,” said Chithambo.
Lifeco holdings limited started its operations in the country in 2020.
The insurance holdings company has Lifeco Asset management company, Lifeco pensions services company and Lifeco insurance company under its roof.