Regulating and supervising pension funds to finance infrastructure in Africa
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2019Author(s)/Corporate Author (s)
United Nations. Economic Commission for Africa;Metadata
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This study reviews the structure and regulations of African pension fund systems, focusing on Egypt, Kenya, Nigeria, South Africa and Francophone countries. It also examines key trends in the structure and regulation of pension funds in other countries and regions including Australia, Canada, the European Union, the Netherlands and the United States. It then provides some preliminary recommendations on how best to improve the regulation and supervision of pension fund systems in Africa, with a view to promoting long-term investments, especially in infrastructure projects. Some of the key recommendations are: Introduce risked-based investment regulations with clearly defined standards of accountability for pension fund fiduciaries and investment managers; Remove barriers to pension fund efforts to diversify their investments. Since it takes time to move from a rule-based to risk-based regulatory system, some portfolio limits are likely to remain in place in most countries; Establish infrastructure as an asset class with its own investment limits. Investment in infrastructure and other long-term assets can be encouraged in rule-based systems if such assets are identified as an asset class and a specific limit is established for them.
Citation
“United Nations. Economic Commission for Africa (2019). Regulating and supervising pension funds to finance infrastructure in Africa. Addis Ababa. © UN. ECA. https://hdl.handle.net/10855/43088”Collections
- Investment Policy [828]