We all share a unified dream: financial prosperity and stability. As I recently navigated my pre-retirement benefit claim from the National Pension Scheme Authority (NAPSA), Zambia’s flagship pension scheme, I embarked on a journey of introspection, shedding light on the nuances of wealth accumulation.
My assessment of the globalized world with its fluctuating currencies and intertwined economic destinies prompted crucial questions: Are our pension returns in Zambia truly on par with our counterparts in developed nations? Do the returns genuinely match our aspirations, especially when benchmarked against global standards? Do the returns we are receiving genuinely reflect the best possible outcome?
Delving deeper into the pension sphere, I encountered the “defined benefit scheme”. While robust and rooted in historical salaries and tenure, this model often sidelines the pressing concern of actual investment performance. The stability it promises could potentially be enhanced by interweaving performance benchmarks to ensure richer transparency and a holistic approach to wealth generation.
Such benchmarks serve as our compass. They do not just measure performance; they embody our collective aspirations, ensuring our contributions are on a trajectory that aligns with global standards. It is essential to view this not as a challenge but as an evolution. As our financial markets mature, integrating benchmarks, even in schemes not traditionally reliant on them, might bolster confidence and clarity. It is all about ensuring our hard-earned contributions are not just safeguarded but are also thriving.
As contributors, it behoves us to engage actively, question diligently, and drive the narrative forward. In moments where returns seem modest against external markers like inflation, it’s an invitation for us all – policymakers, regulators, institutions, fund managers, trustees, and contributors – to collectively brainstorm. How can we elevate our pension and fund management landscape to match global best practices while ensuring Zambians enjoy optimal wealth accumulation? In this pursuit of prosperity, appropriate benchmarking stands as an emblem of transparency and growth, ensuring our returns not only rival but trans-formatively and consistently surpass markers such as inflation and currency depreciation.
Trustees, our financial sentinels, shoulder significant responsibility. Their role cannot be overstated as their decisions resonate with our collective financial ambitions. Their proactive involvement and deep understanding of financial markets are paramount. Are they equipped to navigate this realm, to challenge and ensure optimal fund performance? If approached today, would they have their fingers on the pulse of our investments and returns? Do they comprehend the nuances of financial markets enough to represent our interests? This underscores the necessity for rigorous training in financial markets. Regulatory bodies must advocate for this, emphasizing mandatory training and certification for all trustees and custodians of collective funds.
Financial literacy emerges as a cornerstone, advocating for a unified, top-down effort. While we have made strides, there is a path yet to be fully traversed. Policymakers, regulators, non-profits, financial service institutions, fund managers, investment brokers, academia, media, and financial investment thought leaders, with their overarching views, must champion this cause with utmost urgency as a life-or-death issue, ensuring every Zambian is equipped with the knowledge to make informed financial investment decisions. To truly leapfrog our position and narrow the prosperity divide internationally, it is paramount to embed financial literacy deep within our societal fabric. It is not just about understanding numbers; it is about crafting a future where every Zambian feels empowered, informed, and prepared.
The media, our beacon in financial enlightenment, plays a pivotal role. Their role extends beyond mere reporting – it’s about educating the masses, serving as a bridge between complex financial concepts and the layman. Their proficiency in financial intricacies ensures Zambians are empowered, making prudent financial investment decisions. They bridge the gap, fostering financial literacy and echoing the importance of staying informed and proactive.
Turning to the role of fund managers, the question of accountability and performance arises. Are they genuinely unlocking the potential to generate alpha, surpassing market averages and providing returns that an individual might struggle to achieve independently? A professional fund manager should ideally be delivering performances that individuals, even with keen market insights, would find challenging to replicate.
Furthermore, does the current landscape truly promote competitiveness among fund managers? In global financial hubs, underperformance often leads to repercussions. By fostering an environment that encourages consistent benchmarking and performance assessments, we can ensure a more dynamic and prosperous financial ecosystem. Here, alternative investments should beckon with promise, potentially offering returns that traditional avenues might find challenging to match. Their wider advocation and inclusion within the investment mix could spearhead Zambia’s wealth accumulation journey, ensuring that our narratives align more closely with our global counterparts. Here too, policymakers et al, have a material role to play.
In conclusion, Zambia’s financial journey, though interspersed with challenges, is ripe with opportunities for growth and collaboration. By emphasizing global standards, accountability, financial literacy, and alpha generation, Zambia stands on the cusp of a prosperous financial future. Together, let’s craft a narrative of collective affluence.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”- Robert Kiyosaki
Dean N Onyambu is the Executive Head of Trading at Opportunik Global Fund (OGF), a CIMA-licensed fund for Africans & Diasporans (@Opportunik), and is a co-author of Unlocking African Prosperity. His 15-year journey in financial markets has been fueled by passion and mentorship. He is a proud former VP of ACI Zambia FMA (@ACIZambiaFMA) and founder of mentorship programs that have shaped and continue to shape 63 financial pros and counting! When he is not knee-deep in charts, he is all about rugby. His motto is about exceeding limits, abounding in opportunities, and achieving greatness. #ExceedAboundAchieve
For more insights from Dean, you can follow him on LinkedIn @DeanLinkedIn , X @DeanX , or Facebook@DeanFacebook .
