Online Reporter
Nelson Gahadza
Zimbabwe’s pensions industry prescribed asset holdings increased by 7,53 percent to US$294 million in the third quarter of 2025, reflecting growing allocations to investments with potential to drive national development.
According to the Insurance and Pensions Commission (IPEC pensions report, prescribed assets, inclusive of gold-backed investments, increased to US$294,63 million in the quarter to September 30, 2025, from US$274 million in the previous quarter.
“The increase points to steady uptake of assets granted prescribed status, which are designed to channel long-term savings into priority economic sectors,” reads part of IPEC’s quarterly pensions report.
Prescribed assets are investments designated by the Government as strategic to national development, and these typically include infrastructure projects, public sector-related instruments and other initiatives aligned with economic policy priorities.
Under existing regulations, pension funds are required to invest a minimum of 20 percent of their total assets in prescribed assets.
IPEC said projects granted prescribed asset status provided opportunities for portfolio diversification while promoting investments that support national development and align with the objectives of the National Development Strategy 1.
“As a result, the commission continues to encourage pension funds to meet the regulatory minimum threshold through investing in a wide array of assets conferred with prescribed asset status,” it said.
However, it noted that despite the increase, compliance remains below the stipulated level.
As at the reporting date, the pensions sector’s compliance with prescribed asset requirements stood at 10,64 per cent of the mandatory 20 percent minimum.
IPEC noted that gold-backed investments remained a notable component of prescribed assets during the quarter.
“While the number of gold coins of varying denominations held by pension funds was unchanged from the previous quarter, their value increased by 16 percent to ZiG204,08 million as at 30 September 2025, from ZiG176,46 million as at 30 June 2025, with the rise attributed to value gains in the gold price,” reads part of the report.
During the review period, the Minister of Finance, Economic Development and Investment Promotion approved 12 prescribed asset applications, expanding the pool of investment.
