Zimbabwe's pensions sector has demonstrated resilient growth in the first half of 2025, according to the latest report released by the Insurance and Pensions Commission (IPEC).
As of June 30, 2025, the sector's total assets stood at US$2.63 billion (ZWG70.76 billion), reflecting a 6% increase from US$2.48 billion recorded at the end of March 2025.
"This growth, largely driven by new investments, member contributions, and favourable adjustments in the value of investment properties and equity, signals positive movement for the sector. However, challenges persist, particularly concerning pension contribution arrears and a large proportion of inactive funds," said IPEC.
Despite operating under a relatively stable exchange rate environment, the sector's total income fell sharply by 78.74% to US$295.47 million (ZWG7.87 billion) for the six months to June 2025, down from US$1.39 billion recorded during the same period in 2024.
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IPEC attributed the decline to reduced fair value gains, which had previously been buoyed by exchange rate movements.
Investment performance varied across asset classes. Investment properties, which form a major component of pension fund portfolios, recorded modest growth of 1.75%, increasing to US$1.16 billion (ZWG31.14 billion) from US$1.14 billion in March.
Unquoted equity investments rose by 3% to US$108.17 million, up from US$105.06 million, while quoted equity investments declined by 1.11%, falling to US$460.37 million from US$465.56 million.
Prescribed asset investments, which fund government securities, also dipped by 2%, decreasing to US$274 million (ZWG7.38 billion) from US$280 million, reflecting a more cautious investment stance amid ongoing economic uncertainty.
