Lesotho: Why Lesotho’s Pension Funds Act Is Expensive to Administer?

When I first read the Pension Funds Act 2019 (PFA), my impression was that it is an expensive legislation to administer. But the fact that it is expensive is not a bad thing. In fact, this maybe one of its positive aspects as I will argue in this article. Let me start from the beginning.

The PFA was enacted to achieve two broad policy goals: (1) to protect the interests of contributors to the fund and (2) to grow the domestic capital market by requiring local investment of funds. There is no doubt…