ABSTRACT
Namibia is generally characterized by a complex and concentrated financial system that has generated a significant amount of savings from pension funds and nonfinancial institutions. Over the years, Namibia’s pension industry has grown in size and scope, contributing substantially to the country’s gross domestic product. However, although Namibia continues to generate substantial savings from pension funds, contrary to policy makers’ expectations, the growth in savings does not always yield higher levels of domestic investment and economic growth. Consequently, despite the economic potential of its pension system, Namibia remains one of the most unequal nations in the world. This chapter argues for reforms of Namibia’s pension system, and by implication pension regimes in Africa and beyond, suggesting the compulsory adoption and application of the UN Principles for Responsible Investment as an important framework that can aid in leveraging pension regimes innovatively to both serve as a social protection net and to broadly contribute to the eradication of poverty and inequality. It uses Namibia’s Government Institutions Pension Fund as a case study and a model to illustrate the potential of pension systems in advancing sustainable development and social justice.
