SA’s post-Covid revival: why harnessing pensions for infrastructure may just work
The latest proposal has sparked formal discussion, in contrast to talks that were previously conducted inelegantly, to resolve longstanding contentions
Forget prescribed assets. They’re a diversion from the potentially solid proposal now on the table that seeks a social compact through retirement funds, representing millions of South Africans’ long-term interests, for investment in growth and employment-generating infrastructure projects.
The introduction of prescribed assets would have been the government’s blunt instrument to force a proportion of retirement fund assets into the dark holes of virtually unaccountable state expenditure. The state would have been raiding pension assets while simultaneously, and in contrast, urging retirement provision...