Pension Funds Urged to Rethink Investments as Government Pushes for Stability
VICTORIA FALLS – Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has urged Zimbabwe’s pension and insurance funds to take advantage of the country’s stable macroeconomic environment to diversify investments and maximize returns.
Delivering his remarks at the Zimbabwe Association of Pension Funds (ZAPF) 50th Annual General Conference in Victoria Falls on May 14, 2025, Prof. Ncube emphasized the need for strategic investment cycles to safeguard pensioners’ benefits.
He assured stakeholders that currency stability remains a top priority for the Government, noting that the introduction of the ZiG has helped curb inflation and preserve purchasing power.
“The first order of Government is to guarantee stability if we are to improve the welfare of our pensioners. Ever since we introduced the ZiG, inflation has come down and the erosion of purchasing power seems to be contained,” he said.
Prof. Ncube also called for portfolio diversification, urging pension funds to shift away from over-reliance on real estate and equities and explore alternative investments such as infrastructure, agriculture and venture capital.
Herald reports that he highlighted the importance of fund managers adjusting asset allocation according to economic cycles, urging them to remain proactive to secure higher returns.
“What investment managers need to do is adjust their asset allocation strategy based on economic trends. When interest rates are high, shifting portfolios becomes crucial.
“Likewise, when interest rates drop, equity investments become viable,” he explained.
Prof. Ncube acknowledged challenges pension funds face, including excessive exposure to struggling property markets, and urged stakeholders to set industry benchmarks to improve pension payouts.
He reaffirmed the Government’s commitment to compensating pensioners and depositors affected by value losses due to past economic instability.
He further assured that offshore investment approvals will be streamlined to allow pension funds greater investment flexibility.
“Government will continue promoting infrastructure, agriculture and venture capital investments to enhance returns and drive economic transformation,” he said.
