The Namibian Building Workers Pension Fund is optimistic about the next 12 months ahead. 

“We are indeed very excited about what the New Year is likely to bring. There seems to be many projects in the pipeline which will impact the construction sector positively. Although not all will materialise at once, at least the prospects of what lies ahead creates optimism, which is always important from a macro-economic perspective,” said Enwich Kazondu, principal officer of the NBWPF. 

“There are constant announcements about investment into green hydrogen, and developments in the renewable energy sector. The opportunities are there, and we are hopeful that Namibian businesses are preparing themselves to actively participate, and that educational institutions ensure that Namibians have the required skills,” he added. 

The construction sector in Namibia is the only one where the registration of employees with a pension fund by the employer is mandatory, and where the employer is required to make a minimum contribution of 4% of the employees’ salary to match what is contributed by the registered employee. Thus, with the anticipation that more persons will be engaged in the sector, the more active the NBPWF will be. The fund currently has 2 194 active (contributing) members, with the total fund assets at over N$275 million.  

“Aligned with these developments are a lot of infrastructure requirements, and hopefully they will commence soon. This can ensure a revival of employment in the construction sector,” Kazondu stated. 

He continued that irrespective of whether the anticipated construction projects will take off in 2024, the relatively recent amendment of Rule 4 (Contributions) of the NBWPF’s Fund Rules, which was approved by the Registrar of Pensions, is expected to have a positive impact. 

Previously, monthly member contributions were restricted to 4% of total salary. This has now changed, and the amendment allows for member monthly contributions higher than 4%. In addition, NBWPF Fund Rules were changed to ensure at minimum a match-up between the employer and member contributions. The change stipulates: “The employer shall make a minimum monthly contribution in respect of each member equal to 4% of the Member’s Fund Salary, or such higher specified rate as set out in the Special Rules”. 

With these changes in place which remove contribution restrictions, employers can now improve their employees’ remuneration package by increasing the contribution to the employees’ pension fund.  At the same time, it is anticipated that higher income-earners and professionals in the construction sector will consider the NBPWF as an option for their retirement savings. 

Said Kazondu: “Now that the level of contributions to the fund are no longer capped, the scope has widened very much. We can now also attract the management of respective companies as well as the likes of architects, engineers and quantity surveyors, or any employees in aligned industries”. 

In order to proactively spread the message about these positive changes, the fund intends to hold an annual roadshow later in the year. 

 “The fact that we still do not have clarity about FIMA (Financial Institutions and Markets Act) and possible compulsory preservations, and that a national pension fund might be introduced, we have to actively engage with our stakeholders. 

We not only need to address uncertainties, but also need to implement strategic focused efforts to ensure that whatever is decided is ultimately in the interest of our members. 

The private sector funds should by no means be threatened by a possible introduction of a National Pension Fund”.