Online Reporter
Rutendo Nyeve, [email protected]
THE Government has called on pension funds to move beyond being passive holders of assets and become proactive partners in driving Zimbabwe’s national development agenda.
Speaking at the Zimbabwe Association of Pension Funds Annual Conference 2026 in Victoria Falls on Friday, Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, said the sector must align its long-term capital with productive investments that fuel economic growth.
“Aligning pension capital with productive investment is not merely a choice; it is a strategic imperative for our nation’s growth,” Dep Min Mnangagwa said.
He emphasised that under the National Development Strategy 2 (NDS2) and Vision 2030, pension funds should prioritise impact investing in renewable energy, agriculture, and SME financing, sectors that grow the nation while providing inflation-hedged returns for pensioners.
“Our vision for the next five years involves a sector that has fully embraced digital transformation,” he said.
He said the Insurance and Pensions Commission (IPEC) is developing a single ICT system to centralise member data and improve tracing of unclaimed benefits.
Dep Min Mnangagwa praised existing partnerships, citing Masvingo where pension funds have poured over ZWG 1.2 billion into low-cost housing, clinics, and solar-powered schools.
He also highlighted the Public Service Pension Fund’s stake in hydro-power stations contributing to the national grid.
“Pensioners’ money is building the Zimbabwe they live in today,” he said.
While celebrating sector growth of 971 funds serving nearly one million members with assets of approximately US$3.11 billion as of December 2025, Dep Min Mnangagwa warned against over-reliance on market valuation gains.
“True success lies in shifting to sustainable, cash-generative investments that mirror real economic activity,” he said.
He also acknowledged challenges, including contribution arrears of ZWG 3.28 billion (US$126 million) and unpaid benefits accounting for 46 percent of regulatory complaints, describing delays in payouts due to weak records as unacceptable.
The recently enacted IPEC Amendment Act tightens governance, introduces criminal penalties for non-compliance, and prevents asset stripping through a new National Asset Register.
“The responsibility is collective. Let us move forward to build a pension system that is safe, stable, and central to the prosperity of every Zimbabwean worker,” he said.
