ZIMBABWE’s pensions industry continued to show resilience in the second quarter of 2025, with total assets rising by 6% to US$2,63 billion, supported by new investments, contributions and fair value gains, it has been revealed.
The pensions industry is a huge investment bloc in the country, having significant holdings in listed and unlisted firms.
Growth in the pensions sector signals confidence from both contributors and investors, and it strengthens the industry’s role as a major driver of long-term capital in Zimbabwe.
Rising assets not only provide a more secure retirement future for members but also enhance the sector’s capacity to support businesses, infrastructure projects, and the broader economy through investments in equities, bonds, and real estate.
“As at June 30, 2025, total assets increased by 6%, reaching US$2,63 billion (ZiG70,76 billion), up from US$2,48 billion recorded on March 31, 2025. This growth was mainly driven by new investments, which accounted for 4% of total assets, and fair value adjustments,” the Insurance and Pensions Commission’s (Ipec) said in its second-quarter pensions report.
“As at 30 June 2025, the value of investment properties stood at US$1,16 billion (ZiG31,14 billion), accounting for 44,09% of total assets. Investment property increased from US$1,14 billion recorded in the prior quarter.
“As at June 30, 2025, quoted equities registered a slight decrease of 1,11%, decreasing to US$460,37 million (ZiG12,31 billion) from US$465,56 million reported on March 31, 2025.”
The size of Zimbabwe’s pensions industry now exceeds that of the country’s biggest stock market, as the Zimbabwe Stock Exchange’s market capitalisation stood at US$2,17 billion as of September.
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This underscores the pension industry’s growing influence as a pool of investable capital, giving funds greater capacity to support businesses, infrastructure projects, and long-term economic growth.
The comparison also highlights the potential for the pensions industry to drive development in the local capital market if a larger share of its funds is directed into listed equities.
“The pension sector’s assets were concentrated in investment properties, quoted equities, and prescribed assets, which together made up 72% of the total asset portfolio,” Ipec said.
“Investments in unquoted equities increased by 3% to US$108,17 million (ZiG2,91 billion) during the quarter under review from US$105,06 million reported in the last quarter.
“This resulted in a marginal decrease in the proportion of unquoted equities to total assets from 4,24% to 4%.”
However, Ipec reported that the asset class’s contribution to total assets declined to 17,5% from 18,77% in the previous quarter.
“The decline was driven by a fall in listed equity holdings by the industry. As at June 30, 2025, contribution arrears totalled US$110,43 million (ZiG2,98 billion), accounting for 4,21% of the sector’s total assets,” the commission said.
“This marks an 18,84% increase from the previous quarter’s figure of US$92,92 million, when arrears represented 3,75% of total assets.”
Ipec said this increase includes both current period arrears and interest earned by sponsoring employers on the outstanding balances.
“The commission is still working with sponsoring employers who have arrears to clear the outstanding contributions,” Ipec said.
“The increase in contribution arrears highlights the continued delay by the fund’s sponsoring employers to remit pension contributions to their respective pension funds.”
According to Ipec, it is engaging with defaulting employers, in line with Section 16 of the Pensions and Provident Funds Act [Chapter 24:32], before invoking garnishing powers.
During the review period, pension contributions totalled US$148,35 million, reflecting an increase from US$84,98 million recorded in June 2024.
Of the US$148,35 million reported, US$123,41 million, 83% was received.
“Although VFEX is still important for US$ investments and foreign listings, the Q2 performance shows the need for stronger coordination in capital markets, clear fiscal policies, and stable exchange rates to attract more investors,” Ipec said.
