Online Reporter
Rutendo Nyeve, Victoria Falls Bureau
THE Public Service Pension Fund (PSPF) has seen its value surge to approximately US$600 million, a substantial increase from its initial ZWD70,2 million seed capital in 2018.
This significant growth is attributed to a diversified investment portfolio and robust measures designed to safeguard beneficiaries and ensure long-term retirement security for its members.
Established to provide a secure retirement for civil servants by accumulating and growing value through strategic investments, the PSPF has also become instrumental in supporting sustainable economic development by investing in real estate and infrastructure projects.
Speaking to Zimpapers on the sidelines of the ongoing Zimbabwe Association of Pension Funds (ZAPF) 50th Annual Conference in Victoria Falls, the fund’s Chief Investment Officer, Dr Farai Gaba said the PSPF is fast becoming a transformative vehicle with a positive economic impact.
He revealed that the fund is already actively advancing the Government’s investment agenda by channelling pension capital into national priority sectors.
These include infrastructure development, affordable housing, mixed-use urban regeneration, and solar energy projects — all aligned with Vision 2030 and the National Development Strategy 1 (NDS1).
As one of the flagship policy interventions under the Second Republic led by President Mnangagwa, Dr Gaba noted that the fund has delivered housing projects for civil servants and university communities, supported urban land delivery, and partnered with local authorities on smart city and industrial hub initiatives.
“The fund maintains a diversified portfolio across asset classes including real estate, infrastructure, equities, fixed income, and offshore investments, which are designed to reduce risk and enhance long-term returns.
“Up to 15 percent of the portfolio is invested offshore to preserve value in hard currency and access global markets, using a cautious allocation model to minimise volatility. PSPF invests in developmental projects such as civil servant housing, solar infrastructure, and commercial property that generate sustainable income while supporting national priorities,” said Dr Gaba.
Dr Gaba said that all major projects undergo independent technical and financial appraisals before commitment and upon completion. Oversight is provided by external asset managers, with governance ensured through active supervision by the Board and Investment Committee, guided by an Investment Policy Statement (IPS).
He said that the fund partners with reputable firms to strengthen investment capacity, with all measures driven by a commitment to preserve capital, maintain income adequacy, and protect the real value of pensions over time.
“The PSPF has delivered housing projects for civil servants and university communities, supported urban land delivery, and partnered with local authorities on smart city and industrial hub initiatives. In the energy sector, the fund has backed solar generation and power infrastructure to enhance energy access and sustainability.
“Additionally, PSPF contributes to the deepening of Zimbabwe’s capital markets by participating in listed equities, supporting real estate investment vehicles, and promoting financial sector stability through long-term institutional investments.
“All projects are subject to independent technical and financial appraisals to ensure transparency and alignment with the national development agenda. Through these efforts, PSPF is positioning pension capital as a transformative force for inclusive economic growth,” said Dr Gaba.
Among the notable projects are Madokero Creek, Madokero Mall, and Varsity Heights, which were officially launched by President Mnangagwa. These developments have created jobs, supported local businesses, and strengthened value chains.
Dr Gaba said the fund is implementing a range of contemporary risk management measures to safeguard the sustainability of pension benefits.
These include diversified asset allocation, actuarial valuations, an investment policy statement, independent project appraisals, offshore investment hedging, governance and oversight, liquidity management, and cybersecurity and operational risk controls.
“These integrated measures ensure that the PSPF is positioned to meet its long-term obligations while adapting to contemporary economic and demographic risks.
The fund in Zimbabwe manages assets valued at approximately US$600 million, with the portfolio value fluctuating based on market conditions. The fund’s growth is primarily driven by member contributions and investment returns, currently averaging a real return of 7,5 percent,” said Dr Gaba.
He said that the PSPF’s investments in solar energy and power infrastructure are improving access to clean energy and supporting sustainability.
These initiatives not only stimulate economic growth but also enhance living standards and create long-term value for current and future pensioners through stable, inflation-protected returns. — @nyeve14
