By Felix Katyetye
Government says it has allocated 11 billion Kwacha to facilitate partial withdrawals of National Pension Scheme Authority (NAPSA) contributions for 600,000 beneficiaries.
Minister of Labour Brenda Tambatamba said that the move is part of the recently signed law allowing NAPSA member to partially withdrawal part of their pension contributions before retiring.
Ms Tambatamba added that once the funds have been injected into the economy it will spur growth.
“Workers are encouraged to invest 20% of their withdrawn NAPSA contributions in tangible business ventures, as this will help in economic growth,” Ms Tambatamba said.
She adds that the government sees this partial withdrawal of NAPSA contributions as an opportunity to promote entrepreneurship and stimulate the economy growth.
And that this move will provide the much needed financial relief to many workers while also growing economic growth.
The NAPSA contributions were initially designed as a form of pension plan for Zambian workers.
However, the partial withdrawal scheme allows workers to withdraw a portion of their contributions before retirement.