Reserve Bank of Malawi (RBM) Governor, Dr. Wilson Banda, says Malawi has about K2 trillion in pension funds that are readily available to be invested for infrastructural development and to transform the country.
Banda said this today in the commercial city during the launch of the Trustee Development Program, which aims to build the capacity of pension fund trustees for improved pension fund management.
"There is a lot of money that is currently sitting in pension funds--about K2 trillion. If you took that money and invested it in infrastructure development, it would make a lot of difference," said the RBM Governor.
He further stated that Malawi cannot only rely on foreign borrowing, which comes with risks like currency conversion, adding that it is better to use domestically generated resources like those in pension funds.
Taking his turn, consultant from Kenya College of Insurance, Dr. Ben Kajwang, indicated that most of the pension funds in the country are invested in Treasury bills and bonds, which are short-term in nature, saying even developed countries use pension funds for infrastructure