Luanda - The Angolan pensions market now has nine operators in this segment, with the recent launch of “BFA Pensões”, which aims to provide its clients and employees, in a situation of retirement, with complementary protection to the state’s Social Security System.
It is a Pension Fund Management Company S.A of the BFA business group, incorporated in November 2022 and licensed by the Angolan Agency for Insurance Regulation and Supervision (ARSEG), in May of this year.
Recently launched in Luanda, BFA Pensões appears as a business opportunity with great growth potential, in a market context with a low penetration rate of pension funds, compared to the total young active population, with many years of contributions and capitalization, according to the chairman of the Board of Directors of this company, António Matias.
According to the manager, the company is in condition for the creation and placement of open and closed pension funds in the Angolan market, at a time when the Mandatory Social Protection System, regulated by Presidential Decree nº 161/22 of 20 July, set the maximum limit for retirement pensions in the amount of Akz 607,874 (US $728).
“We introduce ourselves to the Angolan market with the mission of developing retirement solutions complementary to social security, ensuring greater peace of mind for all workers at the end of their professional career”, he assured.
The source states that, from 2024, the new operator will start managing the first pension fund, starting to manage the BFA employees pension fund, which is among the three largest in Angola.
He mentioned that his company also plans to launch an open fund aimed at independent professionals and individuals, namely BFA's private clients and other interested parties, giving the possibility of a wider membership of participants. For this modality, he added, in addition to the benefit in the retirement situation, support for the education of minor children is included.
In addition, the CEO said that the company has met with several public and private entities, presenting its offer for the creation and management of pension funds, with a view to offering companies and individuals an investment option that allows workers have a more dignified life at retirement age and reduce social inequalities.
“We believe that each client is unique, and it is for this reason that BFA Pensões will help organizations define their own pension plans, with rules and conditions in accordance with the specific needs of their employees and beneficiaries, thus guaranteeing a safer and more peaceful future for everyone”, he highlighted.
With this, he said, the Management Company intends to take on an increasingly active role in the economic development of Angola, as happens in other countries, where pension funds are already an important means of financially empowering some private companies and increasing its productive activity, providing more wealth and more jobs.
In the same vein, the president of the Board of Directors of Banco de Fomento Angola, Maria Bernardo, stated that the launch of BFA Pensões reflects the dynamism of this institution to explore new opportunities in markets related to its activity or complementary, positioning itself as a relevant partner for Angolan companies and families.
The manager also considered this initiative a demonstration of the bank's strong commitment to transforming the lives of all its customers and partners, creating economic and social value, in a consistent and responsible manner.
With this purpose, the CEO announced that the banking institution has started a program called “Sustainability Journey”, to align its agenda with the business strategy, with a view to boosting profitability and reaffirming its commitment to the country's development.
With BFA Pensões, which appears in a year in which the bank celebrates 30 years of existence in the Angolan banking market, the country now has nine companies in this sector, four of which are insurance companies and five fund managers.
Data from the Angolan Insurance Regulation and Supervision Agency (ARSEG) indicate that, of the approximately two million employees registered with the National Social Security Institute (INSS), only fifty thousand (2.5%) signed up to the pension fund's complementary package, a fact that should be seen as a business opportunity for this market, taking into account the number of people, mostly young people, who are still outside of this system.
According to the latest report published by ARSEG, as of December 31, 2022, the country had only eight pension fund management entities, managing 37 pension funds, of which 28 were closed.
During this period, the Insurance Agency said that the value of pension funds grew by 39%, reaching Akz 835billion (US $996.53 million), of which 97% represented the value of closed-end funds, that is, funds promoted by companies and institutions for their workers.
According to ARSEG, pension fund assets have had a significant impact on the national economy, since the investment portfolio in this market is predominantly made up of Treasury Bonds, which represent 53% of total investments.
Pension funds are autonomous and independent assets of a given company, which are intended to finance one or more pension plans, through contributions from companies and/or their employees.
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