Online Reporter
Nelson Gahadza
Senior Business Reporter
Zimbabwe’s pension sector’s total assets rose 2 percent to US$3,47 billion between March and June, although its balance sheet continues to show weaknesses around contribution arrears, prescribed assets and member benefits.
According to the pensions sector second quarter 2026 report produced by the Insurance and Pensions Commission (IPEC), the sector recorded a significant improvement in income.
Most of the growth was driven by investment gains rather than contributions.
According to the report, which covers private occupational pension funds and is based on unaudited returns submitted by pension funds and administrators, the increase in total assets was driven by fair-value gains on financial assets.
“Total assets increased by 2 percent from US$3,41 billion as at 31 March 2026 to US$3,47 billion as at 30 June 2026,” IPEC said.
The sector generated total income of US$595,46 million during the six months to June, more than double the US$295,47 million recorded during the corresponding period last year.
Investment income accounted for the largest share of the sector’s income at 62 percent, while membership-related income contributed 32 percent and other income six percent.
Investment income amounted to US$366,76 million, with fair-value gains accounting for US$260,12 million, or 71 percent of investment income.
Realised profits from financial assets contributed nine percent, while interest and dividends accounted for another 9 percent and rental income 7 percent.
IPEC said the performance points to an improved investment environment for pension funds, but the heavy contribution of fair-value gains means trustees may need to distinguish between accounting gains and recurring income when assessing the sector’s financial strength.
