Government’s plan to go after pension funds could financially ruin South Africans
Analysts and opposition parties have warned against government’s plans to force pension funds to invest in bonds issued by government.
In August, president Cyril Ramaphosa said that South Africa should investigate using worker pensions to finance development and infrastructure projects.
“We need to discuss this matter (prescribed assets) and we need to discuss it with a view to actually saying what is it we can do to utilise the various resources in our country to generate growth in a purposeful manner,” Ramaphosa said.
The ANC has also previously floated the idea of using pensions to help fund embattled state-owned enterprises.
In a parliamentary debate on the issue of prescribed assets on Tuesday (10 September), the DA’s Natasha Mazzone said that the proposed scheme would cause incredible damage to the savings of millions of South Africans, and is unlikely to help the country’s state-owned enterprises to recover from debt.
Read more @Business Tech
