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Finance
NATIONAL PENSION SCHEME
AUTHORITY (NAPSA)
Stanley Phiri
Director General
Lusaka House
PO Box 51275 Lusaka
Tel: +260-211-223772
Fax: +260-211-221195
sphiri@napsa.co.zm
www.napsa.co.zm
The National Pension Scheme Authority (NAPSA)
was established following the reform of the Provi-
dent Fund started in 1995. The desire to strengthen
pension provision in Zambia culminated in the en-
actment of legislation to establish a new national
pension scheme, to regulate both existing and new
occupational pension schemes; and to amend the
Civil Service and Local Authority Pension Schemes
to strengthen their administration and financing.
The Zambia National Provident Fund was a Sav-
ings Scheme where benefit payments were depend-
ent on one contingency per member. The design
of a Provident Fund failed to maintain the value of
the members’ contribution. What’s more, the Civil
Service Pension Fund and the Local Authority Su-
perannuation Fund have had inadequate funding
problems resulting in unfunded liabilities.
The design of the National Pension Scheme Author-
ity has taken into account protection against multiple
contingencies. The benefits under NAPSA reflect a
preservation of all financial elements in the pension’s
formula.
In 1996, the National Pension Scheme Act No. 40
authorized the conversion of the Zambia National
Provident Fund into a new National Pension Scheme
under the National Pension Scheme Authority. The
Pension Scheme Regulation Act of 1996 established
a regulatory framework for all pension schemes in
Zambia except the new National Pension Scheme.
NAPSA therefore applies to the Civil Service Pen-
sion Fund, Local Authorities Superannuation Fund
as well as the numerous private pension schemes
under one umbrella scheme, without any compart-
ments.
“Being one of the most vibrant financial institutions of
Zambia, NAPSA represents a prudent administrator
of a crucial security scheme that aims to guarantee
its members social protection”
Stanley Phiri
Director General
NAPSA is currently the biggest pension house in
Zambia with 3 million cumulative members and
496,000 current members. NAPSA accounts for
12,000 employer companies registered, amongst
both private and public sector. NAPSA has devel-
oped a large network of regional branches (23 points
of contact) around the country, and is seeking to work
more closely with institutions like National Savings
and Credit Bank or the Zambia Revenue Authority
to extend its regional reach. NAPSA is also currently
developing an integrated IT system that will enable a
more efficient and faster delivery of service.
NAPSA has mainly invested in securities and equity
of various companies throughout Zambia as well as
real estate. They invested K3.2 trillion in the form of
various projects in 2010. The investment portfolio of
treasury bills stands at K396 billion. NAPSA has so
far invested K286 billion into the Levy Business Park
and K91.3 billion and K63.6 billion into the Kalulushi
Housing Project and Nyumba Yanga Housing Pro-
ject, respectively. NAPSA aims at developing and
diversifying its investment portfolios to remain sus-
tainable for future generations.
The final addition to the Levy Business Park will in-
clude a double volume shopping mall that will bring
high-profile international and local tenants, offering a
wide range of products and services, including en-
tertainment, leisure and movie theatre facilities. The
Levy Business Park will be completed shortly.
The Kalulushi Housing Project is scheduled for
completion in of May 2012. The Kalulushi Project is
expected to create approximately 500 jobs during
construction, and will be composed of 438 mixed
profile-housing units. The Nyumba Yanga Hous-
ing Project, which is being undertaken by National
Housing Authority (NHA) under NAPSA, will produce
a further 300 housing units.
NAPSA has also disclosed that its equity invest-
ments stand at K316 billion within 16 companies
listed on the LuSE as of 31 May 2010.
“NAPSA, through its investment activities, is directly
contributing to the development of Zambia and will
continue to be a strong financial institution helping
build the economy for the future.”
Stanley Phiri
Director General