Online Reporter
Nelson Gahadza
Senior Business Reporter
The insurance and pensions industry has a critical role to play in driving Zimbabwe’s economic transformation through the mobilisation of long-term capital for productive investments, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
In a speech read on his behalf by Mr Kudakwashe Zata, director of finance at the Insurance and Pensions Commission (IPEC)’s 8th Annual General Meeting on Tuesday, Prof Ncube said a resilient, inclusive and well-regulated insurance and pensions sector was indispensable to the country’s ambition of attaining an upper-middle-income economy by 2030.
He said the sector remained one of the key pillars of the economy, providing financial security, supporting investment and strengthening social protection systems.
“The insurance and pensions sector remains a vital pillar of Zimbabwe’s economy. It provides financial security, mobilises long-term savings, supports investment, strengthens social protection and contributes to financial stability.
“As the Government advances Vision 2030, we recognise the importance of a resilient, inclusive and well-regulated insurance and pensions industry,” he said.
The minister said the industry should intensify efforts to channel long-term savings into productive sectors of the economy to accelerate national development.
“We recognise the importance of insurance and pensions, especially for economic development. In this regard, the insurance and pensions industry should continue playing its developmental role of mobilising long-term capital for productive investments.
“Institutional investors have an important contribution to make towards infrastructure development, renewable energy, housing, agriculture and other strategic sectors that underpin Zimbabwe’s economic transformation,” the finance minister said.
Prof Ncube said the Government was encouraged by the macroeconomic stability, noting that prudent fiscal and monetary policies had created a favourable environment for long-term financial planning.
“Good fiscal and monetary policies have created a conducive environment for long-term financial planning, thus strengthening the ability of insurers and pension funds to preserve value and honour their obligations to policyholders and pension scheme members,” he said.
However, he cautioned that global headwinds continued to pose risks to the sector and underscored the need for resilience and adaptive regulation.
“As we consolidate these gains, we remain mindful of global uncertainties, including geopolitical tensions, climate-related risks and technological disruptions. These developments underscore the importance of adaptive regulation and a resilient financial sector.”
The AGM also marked the conclusion of IPEC’s 2021-2025 strategic plan, which the minister described as a period of significant institutional transformation and regulatory reform.
He said the achievements highlighted by IPEC represented the culmination of five years of strategic repositioning that had strengthened confidence in the insurance and pensions sector.
The Minister said IPEC had evolved into a modern and technically capable regulator over the past five years through the implementation of several key reforms.
“Over the past five years, IPEC has evolved into a modern and technically capable regulator through the implementation of risk-based supervision, including market-specific mortality tables and a regulatory sandbox.”
Looking ahead, the minister outlined the Government’s expectations under IPEC’s new 2026-2030 strategic plan, which seeks to build on the gains achieved over the past five years.
He said priorities would include the full implementation of risk-based supervision, the operationalisation of IPEC’s expanded mandate, promotion of inclusive insurance and micro-pensions, digital transformation and strengthening climate resilience.
“The next steps should focus on the full implementation of risk-based supervision, operationalisation of the expanded IPEC mandate, promotion of inclusive insurance and micro-pensions, digital transformation and innovation, sustainability and climate resilience, and the successful conclusion of the pre-2009 compensation programme,” he said.
Prof Ncube reiterated the Government’s commitment to resolving one of the sector’s longstanding challenges – compensating pensioners who lost value due to economic disruptions before the adoption of the multi-currency system in 2009.
“We remain committed to working with the industry and other stakeholders to bring closure to the pre-2009 compensation process while ensuring that future generations of pensioners receive fair and sustainable benefits,” he said.
The minister also welcomed progress made in strengthening consumer protection through improved market conduct supervision and enhanced transparency.
“Protecting the interests of policyholders and pension scheme members is at the heart of financial sector regulation. The Government welcomes the progress made in standardising market conduct supervision and enhancing transparency across industries.”
