The legal analysis of the law regulating the investment of pension funds in infrastructure projects in South Africa

Abstract

The study analyses the legality and efficacy of investing a portion of pension benefits in infrastructure projects with the aim of stimulating economic growth in South Africa. It further examines the historical background of pension fund investment practices in the country, particularly in relation to infrastructure development. In addition, the mini-dissertation reviews Regulation 28 of the Pension Funds Act 24 of 1956, as amended, which principally governs the investment of pension fund benefits in South Africa. The study also clarifies the concept of prescribed assets within the South African context. Furthermore, it undertakes a brief international comparative analysis to explore existing mechanisms employed by developed countries such as Canada, Australia, the Netherlands, the United Kingdom, and Nigeria, in order to understand how these jurisdictions facilitate, regulate, and safeguard pension fund investments in infrastructure project development.