Need To Restore Confidence In The Pensions, Insurance Industry

By Shingirai Vambe

Bulawayo-The recovery of long-term savings is only possible in the country if confidence is fully restored in the pensions sector, an official said.

Speaking during Zimbabwe Economic Development Conference (ZEDCON 2025),Commissioner of Insurance and Pensions Commission(IPEC) Grace Muradzikwa said confidence restoration is the “elephant in the room” for the entire sector.

She added that legal, regulatory, and strategic reforms are already underway to confront it.

“If we do not address this elephant in the room, there is no future for long-term savings in this country.

“We need to demonstrate that we collected money from pensioners and that we are ready to give them something back. Macroeconomic instability notwithstanding, it’s important for us to resolve these issues, ”Muradzikwa explained.

She told the delegates that with over 104 insurance players and 968 registered pension funds in the country, nearly half of them are inactive .

“IPEC is under pressure to not only regulate but revive a critical sector for national savings, investment, and social protection,” the Commissioner said.

Muradzikwa revealed that pension fund assets currently sit at around US$2.5 billion, while insurance assets are just over US$1 billion, bringing the total industry to just under US$4 billion in assets.

“Quarterly insurance revenue is averaging US$450 million, and pension contributions are being undermined by informal payments and “non-pensionable allowances.

“Because of these brown envelopes that we are giving each other, which are not pensionable, the level of pension contributions has also gone down significantly,” Muradzikwa said.

The Commissioner said pension funding is not easy cash, adding that some projects brought to them for funding would not even pass basic scrutiny in terms of return on investments.

“Let me emphasize that pension funds’ money is not cheap funding. Some of the projects people bring to us would not even pass basic scrutiny in terms of return on investment.

“While IPEC is open to government-approved infrastructure and development projects, viability must drive investment decisions.

“We will give money but it must be for viable projects,” she insisted.

Muradzikwa also spoke about protection of pensioners from loss of value, especially during currency transitions and periods of inflation.

“Every time there’s been a currency change, it has resulted in loss of value for pensioners. “We are asking whether it is possible to create economic items where we ring-fence long-term savings?”

“Monetary policy must align with long-term savings protection, especially as Zimbabwe explores a return to a monocurrency regime,” she said.

Muradzikwa said IPEC is deepening stakeholder engagement with employers, unions, asset managers, and shareholders to rebuild trust across the value chain.

“We want an industry that attracts capital. We can only do this if we are able to offer good returns on investment. Restoring faith in pensions and insurance is central to national development.

“Hyperinflation destroyed savings. But we cannot allow that to be the end of the story. If we want to talk about infrastructure, housing, economic development, we need to rebuild this sector. We are doing that, one reform at a time, ”the Commissioner said.