US-based Zambian Constitutional Making Expert, Professor Muna Ndulo, says there is nothing sinister about the National Pension Scheme Authority (NAPSA)’s involvement in certain investments, such as Public-Private Partnerships (PPPs).
He stated that the key question should be whether NAPSA’s investments are profitable.
Prof Ndulo points out that pension funds worldwide are major investors in real estate, such as buildings in New York because the investments are meant to generate income for the fund.
He argues that the focus should be on the profitability of these investments.
“If they are not, then they should not be pursued as they would represent poor investment decisions.
However, if the investments can double the fund’s money, then there is no issue, as this is a common practice among other pension funds globally,” he said.
Prof Ndulo emphasizes the importance of evaluating the profitability of investments to ensure they are beneficial for the fund.
The remarks were made at the Southern African Institute for Policy and Research (SAIPAR ) Muna Ndulo Campus in Lusaka during a discussion on the Policy Brief on Advancing Zambia’s Public-Private Partnership Framework, emphasizing the role of public participation, officially opened by SAIPAR Executive Director Prof Manenga Ndulo.
At the same function, Dr Tinenenji Banda, a Research Fellow and Associate Director at the Southern African Institute for Policy and Research (SAIPAR), remarked that public discontent can derail PPPs, an observation SAIPAR found in their research.
Dr Banda said, “Often, the government overlooks public participation because they are anxious to get the agreement off the ground. However, the key is understanding that public participation makes economic sense. In the long term, misinformation generated from public misconceptions about what PPPs are designed to do can distract from delivery, and projects can even close due to riots and other disruptions.”
She highlighted that her paper focused on the narrow aspect of how PPPs succeed.
Dr Banda said engaging the public early in the process allows them to see how PPPs can align with their broader aspirations.
“Public participation is not a waste of money; in fact, it’s one of the fundamental tools to underpin the project. Public support is invaluable, and underestimating the cost of a lack of support can be detrimental,” she said.
Dr Banda cited an example in Zambia, where public misunderstanding could potentially distract some PPP projects.
She emphasized that people need to understand that institutions like NAPSA are investment vehicles and are designed to make investments.
Dr Banda said misconceptions about PPPs can arise, but transparency and public engagement can mitigate these issues.
