Reserve Bank of Malawi (RBM) figures show that Pension assets went up by 34.6% in 2018 to close the year at K716.5 billion. In an annual report called 2018 Financial Institutions Supervision RBM noted that annual pension contributions also went up to K98.3 billion from K62.5 billion in 2017, which the bank says is due to growth in membership and general increases in pensionable emoluments.

Membership of the national pension scheme increased to 406,068 in 2018 from 304,256 in 2017, largely following the inclusion of the newly registered pension funds into the industry. Despite the findings, pension contribution arrears rose to K13.1 billion from K9.9 billion in 2017, equivalent to 1.8% of total assets. According to the report, the rise was mainly attributed to contribution arrears amounting to K2.8 billion by newly registered pension funds.

The report shows that during 2018, assets grew substantially on account of an increase in contributions and investment income. “The Public Service Pension Fund was registered as a stand-alone restricted pension fund and its existence significantly affected the industry due to the size of its assets,” reads RBM report.

By the end of 2019, pension assets would swell to K894 billion and increase further to K1.1 trillion by the end of 2020; a forecast by the central bank.