THE National Pension Scheme Authority (NAPSA) says it is not legally possible for Small and Medium Enterprises (SMEs) to use pension contributions as collateral for bank loans. This follows a recent call by the Zambia Association of Manufacturers (ZAM) during a town hall meeting on the country’s mid-year budget performance, urging government to consider allowing SMEs to access bank loans using NAPSA contributions as collateral. But in an interview, Monday, NAPSA Head of Corporate Affairs Cephas Sinyangwe said such a proposal was prohibited by law and went against the very purpose of pension funds. “It is difficult to comment on this proposition without having a full understanding of how this is envisaged to work. That notwithstanding, it is important to...
