Online Reporter
Nqobile Bhebhe [email protected]
THE Insurance and Pensions Commission (IPEC) has warned that projects seeking funding through prescribed assets must demonstrate clear value for money and bankability, as the insurance and pensions industry has limited new funds available for investment.
IPEC Commissioner Dr Grace Muradzikwa said the regulator had a delicate balancing act of supporting national development while protecting the interests of policyholders and pension scheme members.
Addressing the Zimbabwe Economic Development Conference (ZEDCON) 2026 in Bulawayo, Dr Muradzikwa said the industry could not afford to channel scarce investable funds into projects that did not provide adequate value or returns.
“Prescribed assets projects must offer value for money,” she said.
“We cannot afford just to give prescribed asset to any project because we really have very limited new money.”
Dr Muradzikwa said statistics as at June 2026 showed that the short-term insurance sector had US$263 million in investable income, while the life assurance sector had US$36 million.
Pension funds, meanwhile, had US$106 million available for investment after accounting for contributions, benefit payments and other expenses.
“So, you can see from these statistics that new money is limited and this is why we are saying when we are looking at these prescribed asset projects, they must offer value for money,” she said.
Her comments come as the Government continues to look at the insurance and pensions industry as a potential source of long-term, or patient, capital for infrastructure and other national development projects.
Prescribed assets are designed to channel institutional investment into approved investments with developmental impact, creating a potential bridge between long-term domestic savings and financing requirements in the economy.
However, Dr Muradzikwa said developmental objectives should not override the regulator’s responsibility to safeguard investors.
“And it’s also important for us to bank only bankable projects. And while doing that, we also need to maintain that balance between the developmental trust and the return on investment for policyholders,” she said.
She said IPEC’s mandate included protecting the rights and interests of policyholders and pension scheme members through oversight and enforcement, while also providing an advisory role to Government.
“We are here to protect the policyholders and pension scheme members, their rights and interests, and through oversight and enforcement.
” And lastly, we also have an advisory role. We are the vice government, and that’s why we are also here,” Dr Muradzikwa said.
The regulator’s position places greater emphasis on project preparation, commercial viability and expected returns when mobilising insurance and pension funds for developmental investments.
