The Public Service Pension Trust Fund says it is committed to investing in high-impact projects that safeguard members’ benefits while contributing to inclusive and sustainable economic growth.
Speaking during a tour of its Cresta Lifestyle Hotel at Kristwick in the former Mulika Club premises near the Clock Tower in Blantyre on Thursday, the fund’s public relations officer Yamikani Sekeni said the investment, which was initially planned at K43 billion at the start of the project in 2024, forms part of their strategic investment portfolio.
He, however, said the construction deadline of the five-star hotel will not be as earlier planned due to some economic challenges, which have also affected the cost of the whole project.
Said Sekeni: “Beyond its commercial value, this development reflects our commitment to investments that support economic diversification, job creation and modern infrastructure development for the benefit of its members and the broader economy.”
He said in addition, the project is creating substantial employment opportunities during the construction phase and is expected to generate long-term jobs in hospitality, management, and allied services upon completion.
The pension fund has in excess of K378 billion, half of which is managed by Old Mutual Pension Services Company.
The two have in the past partnered in the construction of hostels at Kamuzu University of Health Science in Lilongwe campus where the shareholding is 50:50.
Speaking during the ground-breaking ceremony of the project in September 2024, Public Service Pension Trust Fund chairperson James Kumwenda said they thought of investing pension funds in the hotel project because it is one of the best long-term investment options.
“The decision to invest in the hospitality industry and specifically this hotel was as a result of a thorough and strategic process,” he said.
Kumwenda said the process involved an extensive economic, financial and market analysis, which revealed that the tourism and hospitality industry holds significant potential for growth.
Kumwenda acknowledged the need to ensure that the pension funds, which are the retirement benefits of the current working population, are invested in secure and high-return platforms so that pensioners get their money timely.
The hotel will, among other facilities, have 107-rooms and a 300-seater conference centre. It is being built in partnership with Old Mutual Investment Group (Omig).
Omig board director Alfred Majamanda is quoted by The Nation as having said that they have vast experience to oversee the hotel project and that it will be completed within the agreed timeframe.
He said the hotel will bring new experience to Malawians while providing more space for conference rooms, including international conferences.
Said Majamanda: “Our aim is to create a world-class facility that will not only serve the needs of travellers, but also stand as a symbol of our nation’s potential and ambition.
In December 2024, the fund, a stand-alone contributory pension scheme for public servants, acquired a 17.58 percent stake in Mpico plc, a subsidiary of the Old Mutual Group in Malawi, at K7.48 billion, making it the second largest institutional investor in the property development and management company.
The fund was launched in 2017.
Cumulatively, Malawi has in excess of K2.5 trillion pension funds, according to the Reserve Bank of Malawi.
Read more on The Nation Online
