Investment philosophy

The National Pension Scheme Act No. 40 of 1996 of the Laws of Zambia provides for investment of funds of the Scheme not immediately required to meet any charges or obligations in a range of assets. The primary aim of the investments is to provide four the benefits of members of the Scheme.

The Authority had its investment guidelines revised in 2017 as per the Investment Guidelines Statutory Instrument (SI) number 19 of 2017.

The following are the allowable investments as per revised Investments Guidelines:

  • Government Securities
  • Listed equities
  • Bank deposits
  • Listed corporate bonds
  • Non listed shares
  • Infrastructure
  • Collective Investment scheme
  • Viable socially and economically targeted investments
  • Direct real estate
  • Listed equities including underwriting
  • Special Purpose Vehicles, that is strategic companies created by the Authority itself
  • Underwriting of transactions
  • Green field investments

Assets of the Authority are invested in full compliance with the requirements of any other relevant statutory and regulatory body such as the National Pension Scheme Act No. 40 of 1996 of the Laws of Zambia, the Securities and Exchange Commission, Zambia Revenue Authority Bank of Zambia and the Pensions and Insurance Authority.

Investments made are reflective of the Senior Management and the Board’s best investment decision and comply with the primary objectives of the Scheme. The following prudential investment guidelines are observed:

  • Adherence to corporate governance principles especially those relating to conflict of interest and accounting standards as adopted by institutions such as the Institute of Directors of Zambia and the Zambia Institute of Chartered Accountants.
  • Ensure suitably qualified professionals are appointed to manage the Authority’s investments.
  • Ensure enough liquidity and maximize investment returns consistent with acceptable levels of risk;
  • Act prudently and in the interest of the beneficiaries and other key stakeholders;

Investment Portfolio

The Authority has diversified its investment portfolio in 10 asset classes holding 45.93% in Government Securities at market value (broken down as 38.48% GRZ Bonds and 7.45% Treasury Bills), 24.10% in Fixed Term Deposits, 15.49% in Real Estate, 9.38% in Infrastructure, 4.38% in Listed Equity and below 1% in Socially Targeted, Subsidiaries, Corporate Bonds, Private Equity and Economically Targeted

The chart shows the Authority’s portfolio composition as at 30th September 2019

The primary aim of the investments is to provide for the benefits of members of the Scheme. The investment approach of the Authority therefore recognizes both the short-term and long term objectives of the Scheme. These include:

  • Capital preservation,
  • Security of the assets,
  • Maximization of investment returns consistent with the acceptable levels of risk, liquidity considerations,
  • Liquidity,
  • Risk diversification and
  • Appropriate asset to liability matching

Subsidiary Focus

Subsidiaries comprises of

  • NAPSA Hospitality Investment Limited (NHIL)
  • NAPSA Investments Holdings Company Limited (NIHCL)
  • Livingstone Market and Bus Station Management Company Limited (LMBSC)
  • Levy Business Park Hotels (SHDCL) 
  • Society House Development Company Limited (SBPHL).

Ongoing Projects


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