The Pensions and Insurance Authority (PIA) says limited investment opportunities at Lusaka Stock Exchange (LuSE) pose a huge challenge to the growth of pension funds in Zambia.
PIA registrar Martin Libinga says the narrow capital markets in the country are hampering the growth of the pension funds.
“LuSE is not fully developed. The limited investment opportunities pose a big challenge to the growth of pension funds in the country,” he said.
Mr Libinga said this at the launch of the Personal Pension Plan by Madison Life Insurance Zambia Limited. He said the industry is facing numerous challenges including narrow capital markets, fragmented supervision of pension schemes, and delayed remittance of contributions and payments of benefits.
Other challenges are good corporate governance, actuarial deficits, coverage and limited scope and adequacy of benefits.
Mr Libinga further urged Government to exempt pia from taxation, contributions and returns on investment arising from pensions. He said this will increase investment funds and allow for meaningful benefits.