ZIMBABWE’S pension fund industry could be set for a period of recovery, buoyed by lower inflation, stronger protection of foreign currency assets, reduced transaction costs and attractive interest rates under the 2026 Monetary Policy Statement (MPS), a new sector analysis showed this week.
In a guidance note reviewing the 2026 MPS, Zimbabwe Association of Pension Funds (ZAPF) director-general Sandra Musevenzo said the new monetary policy measures were expected to stabilise Zimbabwe’s pension industry.
“The reduction of inflation to 4,1% halts the chronic erosion of pension values that has plagued the industry for decades,” she said, adding that sustained stability would allow funds to better project liabilities and asset growth.
Her remarks come as the Reserve Bank of Zimbabwe (RBZ) said it will maintain a tight monetary stance aimed at consolidating price stability.
Inflation slowed to 4,1% in January — the lowest level in more than three decades — while the exchange rate remained relatively stable under the willing-buyer willing-seller system.
Musevenzo also welcomed policy assurances on foreign currency holdings, describing the “explicit policy pronouncement safeguarding foreign currency-denominated pension assets and VFEX equities from forced liquidation or conversion” as a major positive for the sector.
Favourable conditions in the money market are expected to support returns.
“The maintenance of the Bank Policy Rate at 35% against an inflation rate of 4,1% results in high positive real interest rates,” the director-general noted, pointing to short-term gains for funds holding local currency.
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Transaction reforms are another bright spot, with caps on POS and withdrawal charges, along with the removal of some fees, likely to ease costs for both pensioners and funds.
“The introduction of the durable physical currency and the stabilisation of prices will help restore the public's confidence in long-term savings mechanisms,” she said, cautioning that rebuilding trust will take time.
