Sikhulekelani Moyo [email protected]
THE Insurance and Pensions Commission (IPEC) has started disbursing US$200 each to 8 600 eligible private occupational pensioners as compensation for losses arising from Zimbabwe’s 2019 currency reforms.
The payments, funded by a US$1,75 million dividend from Mutapa Gold Resources, are intended to cushion pensioners against the erosion of the value of their benefits following the currency conversion.
In a statement on Friday, IPEC said beneficiaries had been selected through a means-tested process prioritising pensioners who received the lowest benefits at the time of the 2019 currency conversion, starting with the oldest.
“The Insurance and Pensions Commission (IPEC) has commenced the process of disbursing US$200 each to 8 600 eligible private occupational pensioners to cushion them against loss of value due to the 2019 currency reforms. The payments are funded from a US$1,75 million dividend received from Mutapa Gold Resources,” said IPEC.
“Beneficiaries were determined through a means tested approach, which prioritised pensioners who received the lowest benefits at the time of the 2019 currency conversion, starting with the eldest.
“The current phase therefore does not cover all affected pensioners at once. Further payments will be made as and when additional dividends are received.”
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government’s allocation of a five percent shareholding in Kuvimba Mining House to IPEC in 2020 was intended to create a continuing source of funding for pensioner compensation through dividends.
“The allocation of shareholding in Kuvimba Mining House to IPEC on behalf of pensioners in 2020, now Mutapa, was intended to provide a source of funding for compensation through dividend payments and this will be done on an ongoing basis,” said Prof Ncube.
“The latest disbursement demonstrates how this arrangement is translating into a sustained support for affected pensioners. While these payments cannot fully restore the value lost, they represent Government’s commitment and effort to mitigate the unintended consequences of the currency reforms on long term contractual savings.”
IPEC Commissioner Dr Grace Muradzikwa said the latest payments covered another group of eligible pensioners following the initial disbursements made in 2021 and 2022 from a US$400 000 dividend.
“Eligible pensioners have already started receiving their compensation payments of US$200 through their Ecocash wallets. Beneficiaries who receive the funds can cash out at any Ecocash kiosk,” she said.
Dr Muradzikwa said further payments would depend on the receipt of additional dividends.
She also clarified that the current payments related specifically to the 2019 currency reforms and were separate from compensation for losses arising from currency changes before 2009.
“Further payments will be made as additional dividends are received. These payments relate specifically to the 2019 currency reforms, not pre-2009 currency changes. That is a separate process that will proceed once the pre-2009 compensation regulations are gazetted,” she said.
In 2020, the Government allocated IPEC a five percent shareholding in Kuvimba Mining House on behalf of pensioners affected by the 2019 currency reforms, with compensation intended to be funded through dividend payments.
IPEC received its first US$400 000 dividend from Kuvimba in 2021, enabling the commission to compensate 4 000 pensioners.
Following the unbundling of Kuvimba Mining House in early 2026, IPEC’s shareholding was transferred directly to five specialised mineral commodity-focused entities: Mutapa Gold Resources, Mutapa Base Metals, Mutapa Energy Minerals, Mutapa Platinum Group and Mutapa Frontier.
