The National Treasury will introduce new pension fund regulations for South Africa before the end of February, says deputy finance minister David Masondo.

The changes are aimed at ‘unlocking’ new investment in infrastructure by the private sector and form part of the process to amend Regulation 28 of the Pensions Fund Act to enable retirement funds to invest in infrastructure, Masondo said in his State of the Nation debate in parliament this week.

“These amendments introduce more effective maximum limits for the trustees of retirement funds to invest for the long term, in various forms of infrastructure projects,” he said.

“The National Treasury has also completed a review of the Private Public Partnerships (PPP) regulatory framework to improve the pace at which PPP projects are planned and to address regulatory challenges. This will allow greater private sector participation and crowd in higher levels of investment.”

In March 2021, the Treasury published its draft amendments to Regulation 28 of the Pension Funds Act for public comment, detailing the projects in which South African pension funds could soon invest.

Treasury said that the proposed review of Regulation 28 is informed by calls for increased investment in infrastructure given the current low economic growth climate.

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