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Friday, 29 June 2012

What is to be done about NAPSA?

Its certainly interesting to hear that the National Pension Scheme Authority (NAPSA) has invested K5 trillion "in various sectors of the country’s economy to enhance job creation". The Acting DG Yollard Kachinda recently pointed to the Levy Business Junction Park as one good example through which NAPSA had contributed to job creation.

And yet - the basic questions have never been asked with respect to NAPSA - where does it it fit in the Government agenda? Where should it be investing its money to properly contribute to real job creation? NAPSA is sitting on a huge load of cash (which of course belongs to the public). But it has failed to use it efficiently and talk of corruption is rife.

At present NAPSA is focused on such mediocre projects and investing in Government securities and bonds. Perhaps what we need is for Government to identify local Zambian fund managers who could then think though how NAPSA's trillions of Kwacha could be used for locally driven job creating initiatives. The model of course would require some intellectual capital - to think through it. And of course there may natural concerns about using pension funds and investing them in initiatives with speculative returns. So the model has to be thought through - including the vital question : what businesses can NAPSA fundes be invested in that can create employment with guaranteed normal return - but at a more grander scale than Levy Junction?

Thats the sort of debate I expect Mr Kachinda to be inviting the public to take part in. But I don't blame him because why invite trouble when no one is bothered?


  1. Zambians are extremely risk adverse and that is the core problem at NAPSA.

    There are so many people who are more interested in keeping their jobs than actually doing their jobs and these are the results; an institutionalized fear of failure.

    Investing in government securities and bonds is the safest way of "investing" and avoiding all risks.

    To further exacerbate matters there is absolutely no incentive for people to seek higher returns.

  2. There we go again - critisizing everything any institution does. Whats wrong with NAPSA projects? In a talkative country like ours who can comfortably win a debate on how best to invest public funds? NAPSA, please go ahead with your "mordenising Zambia projects" and stop listerning to critics who have fled their own country to enjoy the sweat of others.


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