Online Reporter
Rutendo Nyeve, [email protected]
THE Government has issued a firm call for pension funds to overhaul their records and systems, describing delays in benefit payouts as unacceptable after revelations that unpaid benefits now account for nearly half of all regulatory complaints.
Speaking at the Zimbabwe Association of Pension Funds Annual Conference 2026 in Victoria Falls on Friday, Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, said weak record-keeping and fragmented systems were failing workers who had spent decades contributing.
“It is unacceptable that our members, who have worked for decades, should face delays in payouts due to weak records or fragmented systems,” he said.
According to the Deputy Minister, unpaid benefits remain the dominant challenge facing the sector, accounting for 46 percent of complaints received by regulators.
He warned that contribution arrears had risen to ZWG 3.28 billion (approximately US$126 million), directly weakening funding ratios and distorting the matching of assets to long-term liabilities.
As of December 2025, the sector comprised 971 funds serving nearly one million members, with total assets of approximately US$3.11 billion.
However, Deputy Minister Mnangagwa cautioned that this performance was largely driven by market valuation gains rather than stable cash flows.
“True success lies in shifting from a reliance on valuation gains to sustainable, cash-generative investments that mirror real economic activity,” he said.
The Deputy Minister also urged pension funds to move beyond being passive holders of assets and become proactive partners in national development, aligning with the conference theme: ‘Pension Funds as Engines of National Development: Unlocking Growth and Member Value.’
“Our vision for the next five years under National Development Strategy 2 involves a sector that has fully embraced digital transformation,” said the Deputy Minister.
He revealed that the Insurance and Pensions Commission (IPEC) is currently developing a single ICT system to centralise member data and improve the tracing of unclaimed benefits.
He called upon the sector to prioritise impact investing in renewable energy, agriculture, and SME financing sectors that grow the nation while providing inflation-hedged returns for pensioners.
“Aligning pension capital with productive investment is not merely a choice; it is a strategic imperative for our nation’s growth,” he added.
The Government recently enacted the IPEC Amendment Act, which tightens governance through stricter conflict-of-interest rules and introduces criminal penalties for executives who fail to provide required data to the regulator.
A new National Asset Register now mandates that funds provide notice before disposing of significant assets, effectively preventing asset stripping.
Deputy Minister Mnangagwa praised existing partnerships, citing Masvingo where pension funds have poured over ZWG 1.2 billion into low-cost housing, clinics, and solar-powered schools.
He also noted the Public Service Pension Fund’s stake in hydro-power stations contributing to the national grid.
“Pensioners’ money is building the Zimbabwe they live in today. The responsibility is collective, and the opportunity to transform our economy is now,” he said.
“Let’s move forward with the resolve to build a pension system that is safe, stable, and central to the prosperity of every Zimbabwean worker,” he said.
The two day conference ended on Friday with amplified calls for the sector to diversify investments, support national infrastructure development projects and strengthen systems.
