Luanda, Angola – The Angolan pension fund market has welcomed its ninth operator, “BFA Pensões,” a subsidiary of the BFA business group. This new entity aims to offer complementary retirement protection to its clients and employees, augmenting the existing Social Security Pension System.

According to Angola Press News Agency, the chairman of the Board of Directors of BFA Pensões, the company is well-positioned to create and place open and closed pension funds in the Angolan market. This comes at a time when the Mandatory Social Protection System, as per Presidential Decree nº 161/22 of July 20, set the maximum retirement pension limit at 607 thousand and 874 kwanzas.

The launch of BFA Pensões, a Pension Fund Management Company SA, was recently announced in Luanda. The company, established in November 2022, received its license from the Angolan Insurance Regulation and Supervision Agency (ARSEG) in May of the same year. The inauguration of BFA Pensões is part of a wider movement to expand pension fund options in Angola, particularly in a market with low penetration rates compared to the young, active population.

Matias emphasized the company’s mission to develop retirement solutions that complement social security, offering peace of mind to workers at the end of their professional careers. BFA Pensões is scheduled to begin managing its first pension fund from 2024, starting with a fund for Banco de Fomento Angola (BFA) employees, which ranks among the three largest in Angola.

Furthermore, BFA Pensões plans to launch an open fund targeting independent professionals and individuals, including private clients of BFA and others interested in a broader participation base. This fund will offer additional benefits, such as support for the education of minor children.

Addressing the company’s outreach efforts, Matias noted that BFA Pensões had met with various public and private entities to present its pension fund creation and management services. The aim is to offer companies and individuals an investment option that ensures a dignified life for workers in retirement and helps to reduce social inequalities.

Mr. Prudence Attipoe, Deputy Director of the Plant Protection and Regulatory Services Directorate (PPRSD) at the Ministry of Food and Agriculture, detailed the registration process for farmers in the system. This includes recording geographical locations and crops grown, linking them with exporters who control the system.

Maria Bernardo, President of the Board of Directors of Banco de Fomento Angola, expressed that the launch of BFA Pensões reflects the bank’s dynamism in exploring new market opportunities. She viewed this initiative as part of the bank’s commitment to transforming the lives of its customers and partners, creating economic and social value.

In line with these developments, the bank has initiated a program named “Sustainability Journey” to align its business strategy with sustainability goals, aiming to boost profitability and reaffirm its commitment to Angola’s development.

BFA, founded in 1992, is among the top five banks in Angola, with a customer base exceeding two million. The introduction of BFA Pensões coincides with the bank’s 30th anniversary in the Angolan banking market.

The ARSEG reports that as of December 31, 2022, the country had eight pension fund management entities, managing 37 pension funds. These funds have had a significant impact on the national economy, with their investment portfolio largely comprised of Treasury Bonds.

With the entry of BFA Pensões, the Angolan pension fund market is expected to become more dynamic, offering diverse options to a growing number of employees seeking supplementary retirement solutions.