Governor of the Reserve Bank of Malawi (RBM) Wilson Banda has indicated that as at June, 2024 pension assets soared to K2.8 trillion up from K74.8 billion in December 2011 while membership rose to 618,152 compared to 102,505 during the period.
He says the growth trajectory of pension assets within the financial sector is unparalleled and can be expected to match the banking sector in the near future suggesting that the sector is fast becoming systemically important to financial stability.
This came out when he launched the Trustee Development Programme in Blantyre, Monday, in his capacity as the registrar of financial institutions where pension fund trustees will be trained in managing the same.
Banda said the program, aimed at promoting the safety, soundness and prudent management of pension funds in Malawi, fulfils one of the aspirations under the Financial Sector Development Strategy that is to build an inclusively wealthy and self-reliant Malawi.
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“The oversight of pension funds has become quite critical and we must all work together to ensure that the sector is operating safely and soundly. Apart from my office, trustees play a critical oversight role in the management of pension funds. As at June 2024, the number of regulated pension funds stood at 31, governed by a total of 9 corporate trustees and 163 individual trustees. It is vitality important that we build the capacity of trustees to manage the pension funds.
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“My office recognises that trustee training is a catalyst for the effective management of pension funds. Given that pensions are long-term products requiring specialised knowledge, the absence of a trustee development programme in Malawi until now has been a significant gap. Comprehensive trustees’ trainings were being offered outside the country, which increased pension fund expenses and also made it difficult for relatively small pension funds to train their trustees, hence the programme,” Banda said.
The programme will be facilitated by Kenya-based College of Insurance.
Its chief executive officer and Director Ben Kajwang said the initiative will elevate the standards of trustee training and certification in Malawi to exemplary levels and international best practice.
“Pension assets are a critical catalyst and enabler for economic development. We are pleased to note that Malawi, has in recent years made very bold steps in reforming the pension sector for inclusivity, more growth. You can be sure this will reap big dividends in development of Malawi.
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“This training programme, modelled after Kenya’s successful initiative, for which it has to date certified over 8,000 trustees, is a crucial step. Nevertheless, it’s just the beginning.
The Kenya Trustee Development Programme was developed in partnership with Retirement Benefits Authority, Humber University Centre for Employee Benefits – Toronto, Canada, Association of Retirement Benefits Scheme and the College of Insurance in 2011.
“As we delve into the modules covering everything from pension fund fundamentals to investment strategies and governance, we’re not just imparting knowledge—we’re fostering a culture of continuous learning and improvement,” Kajwang said.
