Ghana. SSNIT’s investment strategies must change now – Bright Simons
Vice President of IMANI Africa, Bright Simons, is advising Social Security and National Insurance Trust (SSNIT) to urgently change its investment strategies it is to see a turnaround from its current bleak standing.
Speaking on Eyewitness News, Mr. Simons noted that about half of the money SSNIT has invested is generating negative returns.
“When you look at how much SSNIT invests and the mechanisms through which it invests, you have to start becoming very worried. No wonder SSNIT itself says that in 14 years, it will run out of money… 45 percent of SSNIT’s output now is trending towards negative returns. That is frightening.”
“SSNIT’s most profitable area is actually to go and compete with the Banks because when you look at its portfolio, it is the loans and things that are doing well. So we need to start reconfiguring the entire portfolio investment approach of SSNIT. That is very critical.”
Mr. Simons explained that SSNIT, on paper, is in a good enough position to provide enough security to pensioners given Ghana has a huge advantage, with one beneficiary to almost 10 active contributors, but SSNIT “pays out benefits almost half of what it receives as contributions.”
Read full content here: Ghana Web
