Online Reporter
Business Reporter
The Insurance and Pensions Commission (IPEC) has established a new administrative framework to streamline the approval process for pension funds seeking to make offshore investments, the organisation has said.
The move follows a series of calls for greater collaboration among market stakeholders.
IPEC board chairperson, Mr Albert Nduna, confirmed that a tripartite committee, chaired by IPEC, is now in place and will be responsible for approving offshore investments. The committee includes representatives from the Securities and Exchange Commission of Zimbabwe (SECZIM) and the Reserve Bank of Zimbabwe (RBZ) Exchange Control.
The new framework aims to improve the effectiveness of a 2022 regulation that permits pension funds to invest up to 15 percent of their portfolios in offshore assets. The regulation, designed to promote diversification, has seen low uptake from pension funds. The RBZ will facilitate the disbursement of funds through authorised dealers.
Mr Nduna called for continued collaboration between capital market players, the banking sector, and the pensions industry to develop new asset classes that meet the sector’s investment needs. He also advocated for a move away from the traditional “assets under management” basis for remunerating asset managers, noting that this model is unsustainable in Zimbabwe’s volatile, high-inflation environment.
“If we maintain this basis for remuneration of asset managers as assets under management, we will continue witnessing a situation where all rental income is going towards asset management fees,” he said.
Meanwhile, IPEC Commissioner Dr Grace Muradzikwa stated that while pension benefits are mirroring asset performance, they are “far from meeting pensioners’ reasonable expectations.” At the Commission’s 7th annual general meeting, she highlighted that improving pension benefits remains a key area of focus.
She said that enforcement of the expenses framework and monitoring of investments had led to a “slight improvement” in average monthly benefits.
Dr Muradzikwa also noted that the Commission is lobbying for holistic pension reforms under the National Development Strategy 2 (NDS2 2026-2030).
According to IPEC’s first-quarter 2025 pensions report, pension assets stood at US$2,5 billion,with insurance assets at US$1,02 billion. Pension sector assets were heavily concentrated in investment properties, quoted equities, and prescribed assets, which collectively made up 76 percent of the total portfolio.
Financial analyst, Mr Malone Gwadu, emphasised the need for enhanced corporate governance and strategic, diverse investments at a micro level to ensure that pension contributions yield expected returns. At a macro level, he said a stable and predictable operating environment is essential for pension funds to thrive.
