The Daily Investor outlines the ANC's proposal in its 2024 Election Manifesto to direct financial institutions to invest in government projects through pension fund assets.

This policy, initially used between 1956 and 1989, but scrapped in 1989, requires pension funds to invest in government bonds, aiming to funnel investments into local infrastructure and development projects.

Opposition from pension funds and asset managers, includes concerns about inefficient investment, lower returns that discourage foreign investment, and hurting the economy by shifting funds away from profitable corporate investments. Critics rather argue for projects that pension funds can invest in, while ensuring proper governance and returns.

 

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