KALONDE NYATI, Lusaka
THE revision of investment guidelines by National Pension Fund Authority (NAPSA) will unlock economic activity as significant funds will be released in the economy to support various sectors, Kukala Capital managing partner Jito Kayumba has said.
Recently, NAPSA , which has, as at end of May, grown its fund to K18 billion, revised its investment guidelines to place more funds in small and medium-scale enterprises (SMEs), energy, capital markets and road infrastructure.
What the revision of guidelines means is that there will be enough funds directed to private equity and venture funds like Kukula Capital to create more value into the economy directly to SMEs
Mr Kayumba said in an interview on Friday that the development will ensure availability of capital, thus spurring growth through the scaling up of SMEs.
“This will completely activate this economy.
“The financial institution (NAPSA) just revised its guidelines and this will result in direct investment in companies. It also includes private equity investment, hiring pension managers that help them in terms of trading on the exchange,” he said.
Mr Kayumba said the development will also create activity on the stock exchange.
“This is probably the most important single event from the time the capital market was developed in the 90s,” he said.
Mr Kayumba said supporting the growth of local SMEs remains critical in curbing illicit capital flows and externalisation of funds, which have affected the growth of most African countries, including Zambia, as revenue will always remain in the country.