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ANC: Pension Funds Should Also Be Used To Invest In Small Businesses

ANC: Pension Funds Should Also Be Used To Invest In Small Businesses

With the Congress of South African Trade Unions (Cosatu) having led the way in exploring the use of pension funds to save Eskom, the African National Congress (ANC) has followed suit saying the savings should also be used to invest in small to medium businesses.

The ANC national spokesperson Pule Mabe told the Black Business Council summit on Thursday that the funding gap for emerging enterprises could be filled by pensions. He was speaking on behalf of the governing party’s treasurer general Paul Mashatile.

Mabe said workers’ capital should be unleashed to deal with the blockages in the economy.

“Increased allocation alternatives investment by pension funds and the saving industry broadly will not only contribute to growing an inclusive economy but will also lead to better risk-adjusted returns for the funds and their beneficiaries,” he said.

Another speaker at the summit, the Democratic Alliance’s policy head Gwen Ngwenya said while there should be disruption in the economy to achieve a more inclusive system, this should not shake its foundations.

South Africa is battling a 29.1% unemployment rate and a technical recession with the 2019 fourth-quarter growth recorded to have shrunk by 1.4%.

EWN

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