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Reserve Bank of Malawi (RBM) Governor Dr Wilson Banda says Malawi has about K2 trillion in pension funds which can be readily invested in infrastructure and national transformation.
Banda made the remarks today at the launch of the Trustee Development Programme at the Business City, which aims to enhance the capacity of pension fund trustees to improve the management of pension funds.
“There is a lot of money sitting in superannuation funds right now – about K2 trillion. If you invest that money in infrastructure, it will make a huge difference,” the RBM governor said.
He further said Malawi cannot rely solely on foreign borrowing as this would bring risks such as currency conversion and it would be better to use domestic resources such as pension funds.
Dr. Ben Kajwang, a consultant at the Kenya Insurance Institute, said that most of the country’s pensions are invested in short-term treasury bills and bonds, and even developed countries use pensions for infrastructure construction.
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