PENSION funds dominated trading on Zimbabwe’s equities market in the final quarter of 2025, emerging as the largest buyers and accounting for nearly half of all shares settled through the Chengetedzai Depository Company and the Zimbabwe Stock Exchange (ZSE) Depository.
Their growing influence reflects the sector’s expanding asset base, with total pension fund assets rising 5% to an equivalent of US$2,77 billion as at September 2025, according to the Insurance and Pensions Commission.
The increase was driven by new investments and gains in property and equity valuations, supported by a rebound on both the ZSE and the Victoria Falls Stock Exchange (VFEX).
Quoted equities remained a key driver of growth, rising 15% to US$528,85 million during the period under review. Their share of total assets also increased to 19,08%, up from 17,5% in the previous quarter.
“During the final quarter of 2025, a total of ZiG1,19 billion worth of trades were settled through Chengetedzai Depository Company and the ZSE Depository,” the Securities and Exchange Commission of Zimbabwe said in its latest capital markets newsletter.
“Pension funds purchased 45,36% of the total shares, followed by corporations which accounted for 24,42%. Individual investors purchased total shares worth ZiG77,74 million (6,53%).”
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Pension funds accounted for 540 089 432 trades during the quarter, underlining their dominance on the buy side.
On the sell side, other financial institutions led disposals, offloading shares worth ZiG515,32 million (43,28%), while individual investors sold shares valued at over ZiG79,5 million (6,68%).
Imara Edwards Securities recorded the highest market share in terms of brokerage commissions on the ZSE, accounting for 34,34%, followed by Morgan & Co and IH Securities at 9,73% and 9,02%, respectively.
Despite strong participation, overall market activity slowed.
“During the final quarter of 2025, Zimbabwe Stock Exchange equities turnover was ZiG1,12 billion from ZiG1,95 billion reported in the prior quarter, indicating a significant decrease of 42,27%,” SecZim said.
Meanwhile, the Financial Securities Exchange recorded 352 trades worth ZiG7 million, marking a 34,07% increase from the previous quarter.
Market performance remained positive, with the ZSE All Share Index gaining 31,92% to close at 277,86 points as at December 31, 2025. The VFEX All Share Index also rose by 17,43% to 177,12 points over the same period.
“The VFEX turnover registered a quarterly growth of 28% to US$21,48 million as at December 31, 2025 from US$16,79 million as at September 30, 2025,” SecZim said.
“The ZSE registered a 38% quarterly drop in turnover from US$73,71 million as at September 30, 2025 to US$45,42 million as at December 31, 2025, bolstered by a negotiated block deal in Econet shares.”
Investment properties, equities and money market instruments continued to dominate pension fund portfolios, accounting for over 80% of total assets.