Online Reporter
Business Reporter
Zimbabwe’s pensions industry recorded a six percent growth in total assets to U$2,63 billion in the quarter to June 30, 2025, according to the Insurance and Pensions Commission (Ipec) second quarter report.
However, this value growth is overshadowed by a worrying surge in outstanding employer contributions, with pension contribution arrears climbing by nearly 19 percent.
According to the report, “Total assets in the pensions sector grew by six percent to equivalent US$2,63 billion at the official exchange rate (ZiG70,76 billion),” up from US$2,48 billion reported in March 2025.
This increase was “primarily driven by new investments, contributions (four percent of total assets) and positive fair value adjustments in investment properties and equity instruments.”
Despite this asset buoyancy, contribution arrears present a serious challenge to the sector’s financial stability.
“As at June 30, 2025, pension contribution arrears rose by 18,84 percent, increasing from US$92,92 million in the previous quarter to US$110,43 million,” the Ipec report stated.
The arrears now account for 4,21 percent of the sector’s total assets, up from 3,75 percent prior year.
This substantial figure includes both current period arrears and interest accrued by sponsoring employers on the outstanding balances.
Ipec acknowledged the crisis, noting that “The Commission is still working with sponsoring employers who have arrears to clear the outstanding contributions.”
“The increase in contribution arrears highlights the continued delay by the fund’s sponsoring employers to remit pension contributions to their respective pension funds.
“In response, the Commission is engaging with defaulting employers, in line with Section 16 of the Pensions and Provident Funds Act (Chapter 24:32), before invoking garnishing powers,” reads the second quarter report in part.
Total pension contributions during the review period amounted to US$148,35 million, of which 83 percent, or US$123,41 million, was successfully received.
This contribution figure reflects an increase from the US$84,98 million recorded in the corresponding period of 2024.
Investment properties remain the largest component of assets, increasing by 1,75 percent to reach US$1,16 billion. Conversely, prescribed asset investments declined by two percent, falling to US$274 million.
Quoted equity investments experienced a minor 1,11 percent decrease while unquoted equity investments grew by three percent.
In terms of expenditure, 72 percent of the total US$98,23 million spent during the period was “dedicated to member benefits,” with 28 percent allocated to administrative expenses.
The sector saw a marginal increase in total membership, excluding beneficiaries, which grew by 0,38 percent to 994 572.
Out of the 968 registered occupational pension funds, 51 percent (489) were classified as inactive, with 372 of these “marked for dissolution.”
