The South African government is considering legislative changes to compel pension funds and asset managers to invest in industrial policy projects.
- The proposed amendments to Regulation 28 of the Pension Funds Act were tabled at a cabinet meeting over the weekend.
- Trade Minister Parks Tau confirmed that the changes will be subject to a comprehensive review.
- The African National Congress (ANC) had pledged to transform the financial sector to ensure adequate funds for industrialization and economic development.
- The proposed changes aim to introduce prescribed assets, making pension funds invest in specific projects.
- The move is seen as a way to boost economic growth and development in South Africa.
- The changes will be reviewed and may have a significant impact on the pension fund industry in South Africa.