Online Reporter
Gibson Mhaka gibson [email protected]
THE country’s private occupational pension sector capitalisation expanded by 10 percent to reach US$3.41 billion (ZWG86.46 billion) in the first quarter ended March 31, 2026, up from US$3.11 billion recorded in December 2025, the industry regulator, Insurance and Pensions Commission (Ipec) has revealed.
However, the strong growth continues to be threatened by delinquent sponsoring employers, prompting Ipec to signal tougher enforcement measures, including the issuance of garnishee orders against companies failing to remit workers’ contributions.
According to the Ipec Pensions Report for the three months ended March 31, 2026, released on Monday, the sector’s financial performance indicators registered strong upward trends.
Total income for the quarter rose by 74 percent to US$313.49 million (ZWG8.02 billion), from US$180.13 million recorded in the corresponding period in 2025.
This growth was driven by a 592 percent surge in profit on asset disposals and a 198 percent increase in dividend income.
Despite the strong balance sheet performance, the accumulation of contribution arrears remains a critical operational bottleneck.
Total pension contribution arrears increased by 18 percent over the three-month period, rising from US$126.26 million in December 2025 to US$148.96 million (ZWG3.77 billion) by March 31, 2026.
According to the report, the Ipec director of pensions coordination emphasised that the regulatory authority would no longer tolerate non-compliance that undermines the post-retirement security of workers.
“The Commission continues to actively engage sponsoring employers to ensure timeous remittance of contributions.
“However, in strict accordance with our mandate under the Pensions and Provident Funds Act [Chapter 24:32], we are prepared to execute garnishee orders against entities with long-outstanding balances in order to halt this capital erosion,” the report reads in part.
The regulator noted that asset growth would remain detached from actual member benefit outcomes if employers continue to withhold legally mandated payroll deductions.
The sector’s asset allocation remains heavily concentrated in long-term, inflation-hedging instruments, with investment properties and equities forming the backbone of portfolios. Investment properties rose by three percent to US$1.38 billion, accounting for 40 percent of total assets.
Quoted equity investments increased by 36 percent to US$948.18 million, supported by robust trading activity on the Victoria Falls Stock Exchange (VFEX) and sustained stability on the Zimbabwe Stock Exchange (ZSE).
Meanwhile, industry membership increased by 14 percent to 1,142,173 members, excluding beneficiaries.
Ipec said this growth was largely technical, following the mandatory reinstatement of 146,861 previously dormant, unclaimed members by the Construction Industries Pension Fund (CIPF) after data-cleaning exercises ordered during regulatory inspections.
At the same time, unclaimed benefits liabilities across the sector rose by eight percent to US$22.28 million (ZWG564.18 million), with self-administered funds accounting for 56 percent of the total unclaimed benefit backlog.
Ipec has warned that persistent data integrity risks will attract strict regulatory sanctions going forward.
