Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
THE Government is set to dissolve 520 inactive occupational pension funds as part of a major clean-up of the pensions sector, a move expected to strengthen oversight, safeguard members’ interests and improve overall industry efficiency.
The development was announced by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, in the 2026 National Budget Statement presented last week.
Providing an update on the performance of the pension industry up to September 2025, Prof Ncube revealed that of the 968 registered occupational pension funds, only 391 remain operational. A total of 577 funds are classified as inactive, with 90 percent — equivalent to 520 funds — now earmarked for formal dissolution.
“The pensions industry had 968 registered occupational pension funds as at 30 September 2025. A total of 391 funds were active, 577 funds were inactive, whilst 90 percent (520) of the inactive funds are earmarked for dissolution,” said Prof Ncube.
This decisive action aims to cleanse the regulatory landscape, protect members’ interests, and redirect oversight resources towards viable and compliant funds.
Despite the high number of dormant entities, the broader industry shows signs of robust financial health and growth.
Total membership across all active funds rose significantly to 1 170 551 as of September 2025, up from 968 746 in 2024 — a positive indicator of formal sector employment recovery and renewed confidence in pension schemes.
Most notably, the total asset base of the pension industry experienced substantial growth.
Industry assets for fund business stood at ZWG75,5 billion (approximately US$2,8 billion), representing a striking 40,24 percent increase from the ZWG53,9 billion recorded in September 2024.
“This represented an increase of 40,24 percent from ZWG53,9 billion as at 30 September 2024, largely from new investments,” he said.
The asset portfolio remains heavily concentrated in investment properties and quoted equities, which together constitute 68 percent of total holdings. This strategy has historically aimed to hedge against inflation and generate long-term returns for pensioners.
However, Prof Ncube also highlighted some headwinds. Total income for the quarter ending September 2025 was US$557,26 million (ZWG14,9 billion), marking a 79 percent decrease from the US$2,6 billion reported for the same period in 2024. This sharp decline was attributed to volatile market valuations and exchange rate effects.
Investment income and contributions remained the lifeblood of the sector, constituting 92 percent of total income. Significantly, 30 percent of the industry’s income was earned in foreign currency, underscoring the sector’s growing dollarisation and resilience to local currency fluctuations.
On the expenditure front, total outlays for the review period climbed to US$172,87 million (ZWG4,6 billion), up from US$91,35 million the previous year. The bulk of this — 75,6 percent, or US$130,68 million — was directed towards benefits payments, ensuring retirees received their dues.
“A total of US$130,68 million was incurred towards benefits expenditure,” Prof Ncube noted, emphasising the sector’s primary obligation to its members. Industry analysts have welcomed the Government’s move, saying dissolving inactive funds will reduce regulatory clutter and enhance member protection. Consolidating the sector allows for better supervision, economies of scale, and ultimately, greater security for pensioners’ savings,” said Mr Tendai Moyo, a Bulawayo-based pension fund advisor.
