Analysis

  • ZAPF 50th annual conference kicks off , as industry promises more support for the economy

    Staff Writer

    Vic Falls:  The Zimbabwe Association of Pension Funds (ZAPF) 50th annual conference and general meeting kicked off in the resort town of Victoria Falls this morning with the fund celebrating its 50th anniversary.

    The annual conference is running under the theme 50 Years Together: Shaping Tomorrow,Today. Building on the past ,embracing the future.

    Giving his opening remarks,ZAPF chairperson Wilferston Chibaya said this was not just a
    celebration of years, but of peoples’ resilience and collective progress.
    “We gather under the powerful theme, 50 years together, shaping tomorrow, today, building on the past and embracing the future.A fitting reflection for our journey, our present and our aspirations” he said.
    He added that half a century ago, the association was formed with a clear vision to safeguard the future of Zimbabwe’s workers
    through robust and sustainable pension systems.
    “Since then, we have walked a path shaped by growth, reform, innovation and at times, profound adversity.” Chibaya said through economic transitions, policy shifts and regulatory evolution, the pension industry has remained steadfast, not only in protecting retirement savings, but in anchoring long-term national development.
    “Over the years, pension funds have played a vital role in the economy,” he said

    Chibaya said the funds had invested in infrastructure, real estate, financial markets and development projects, contributing to job creation, capital formation and social stability.

    In many respects,Chibaya said the pension industry had acquired a powerful engine of progress, focused not on the short
    term, but on the future.

    “Yet, we must acknowledge the significant trials that have tested our industry. Trials that at times have threatened its very foundation. Chief among these have been the loss of value experienced by pension funds, largely as a result of obvious macroeconomic policies and structural economic instability.
    Hyperinflation, abrupt currency changes and monetary policy inconsistencies have eroded the real value of pension services. These events did not just disrupt balance sheets, they shattered the hopes of many pensioners who had entrusted their future to long-term savings. The social and human cost has been enormous.
    Retirees left vulnerable and active members questioning the reliability of their future benefits,”he said

    Chibaya added that this erosion of value undermined confidence in our pension system and exposed structural vulnerabilities, from investment concentration risks to outdated benefit models and insufficient
    hedging mechanisms.

    For fund managers, he said navigating this terrain required agility, innovation
    and deep resilience, all while maintaining a fiduciary duty to members.

    “As an association, we have stood idly by. We have advocated and continue to advocate for
    reforms that strengthen pension fund governance, protect savings from economic shocks and foster a stable macroeconomic environment that supports long-term investments.

    We have encouraged diversification, promoted actuarial soundness and called for policy consistency that aligns with the interests of our members and the nation at large.

    Today, as we stand to this golden milestone, we take pride in the progress we have made, but
    we also recognise that the work ahead is no less important.

    The future calls on us to embrace
    digital transformation, to respond to the needs of an evolving workforce, to strengthen risk
    management frameworks and to ensure that our pension systems are inclusive, transparent
    and resilient,” he said.

    He urged players not to re-margin the role of pensions not merely as financial
    instruments, but as vehicles for national development and social protection.

    “Let us invest with impact, manage with integrity and sell with empathy, building a system that the next generation can trust and rely on. To all our members, past and present,” he said
    May 15, 2025
  • ZB Bank launches mobile wallet “Smile Cash”

    Staff Reporter

    ZB Financial Holdings, through its banking unit ZB Bank, has launched a new mobile wallet, “Smile Cash”, as part of its digital expansion and the desire to drive financial inclusion.

    Smile Cash is accessible via USSD (*225#) and is compatible with any mobile phone and currently offers zero transaction fees for users.

    The ZB Chief Transformation Officer, Kangai Maukazuva, said the mobile wallet service was developed internally, hence the leverage to offer free transaction costs.

    Some of the features of the wallet include standard cash in/cash out, merchant payments, transfers to bank accounts, and transfers to other mobile wallets. Additionally, there are also QR code payments.

    Funeral Cover Policies Drive Gross Insurance Premium

    Meanwhile, the group delivered a strong performance in the quarter ended March 31, 2025 (Q1FY2025), driven by cost containment measures and a resilient balance sheet.

    As a result, a profit after tax of ZIG261.940 mln was achieved. Total income for the year to date was ZiG839.928 mln, marking a 119 per cent increase from 31 March 2024.

    “The increase in income is attributable to the improved net interest margins of ZiG281.997 mln and enhanced capabilities of the new core banking system, which enables more effective identification and collection of all potential income streams,” reads part of the financials.

    The Group earned commission and fees of ZiG428.300 mln, supported by an increase in electronic banking earnings; a gross insurance premium of ZIG36.817 mln, driven by increased sales of funeral cover products; net property income of ZiG37.989 mln, as rental income remained stable; and other income of ZiG15.066 mln.

    The group’s deposits decreased by 40% to ZiG 3.287 bln, while insurance contract liabilities increased by 66% to ZiG 446.333 mln.

    “This was primarily driven by strong customer retention through proffering customer-centric products and solutions,” the group said.

    On the other hand, total assets decreased by 6% to ZAR 13.547 bln because of the decline in the cash and short-term funds and the deterioration of the value of the listed investments portfolio.

    The group noted that capital and liquidity levels remained strong, with all business units being compliant with the minimum regulatory capital requirements apart from ZB Building Society.

    ZBFH said it expects to consolidate its banking operations into one banking licence in the near future.
    May 15, 2025
  • Private Equity Funds: When the Alternative Becomes Mainstream

    HARARE, If there is one thing that has been proven over and over again in the last two decades, it is that the ZSE alone cannot be relied on for value preservation. Some investment management pundits are though quick to counter this by
    demonstrating that it has beaten official price inflation over the period. A deeper analysis, however, shows how dismally it has fared against the rate of currency depreciation – and that, is the true benchmark for any value
    preservation assessments.
    A new industry order demands that pension funds diversify their investments beyond just the ZSE and property exposures.. continue reading….Insu24_Newsletter 08 May 25 Issue
    May 8, 2025
  • Weak Regulation of Medical Aid Societies in Zimbabwe: A Call for Reform

    Staff Writer

    HARARE: The regulation of Medical Aid Societies in Zimbabwe is sadly inadequate, according to Itai Rusike, Executive Director of the Community Working Group on Health (CWGH).

    In a statement, he said the Ministry of Health and Child Care (MOHCC) lacks the capacity to effectively regulate these societies, and the proposed new bill aimed at creating a Regulatory Authority should strive to address this.

    He said one major concern is the conflict of interest within the MOHCC, where some regulators are also providers of care who benefit from the same Medical Aid Societies they are supposed to regulate.

    “Separation of functions is very weak for example two of the biggest Medical Aid companies in the country are both fund managers and providers of care making it difficult for them to focus on their core business of pooling resources and purchasing services on behalf of their clients.

    “While the idea was to minimize care but that has since been abused.  Small medical aid providers have lost business as a result as the small trickle of patients that come their way who are mostly uninsured or under-insured and are having to be charged exorbitant fees to compensate for the small numbers,” reads part of the statement.

    He added, “We must understand that health care is not like an ordinary good such as bread or drinks where one can make a choice of either to consume or not and when to consume those goods.

    “Sickness always comes unexpectedly and when sick, people have no freedom or luxury to make choices – what they want is care and nothing else – this desperation is then taken advantage of by providers of care,” he said.

    Rusike noted that there are too many pools (Medical Aids) as this was encouraged by the Competition and Tariff Commission to increase competition in the sector in order to trigger increased quality and lower prices.

    However, Medical Aids through AHFOZ seem to be operating as a cartel. In essence the market has an oligopoly where a few players are dominating the market.

    Price/Tariff Setting – this is where we are not getting it right – be it pharmaceutical products/services, clinic/hospital services or other ancillary services.

    “I mean we need a Commission to look at the entire medical services value chain on What is informing our prices? and what is informing our interventions.

    “We also need a full costing of clinic/hospital interventions – when a doctor manages a cervical cancer patient for example – how much does it cost to do so?,” said Rusike.

    He noted that the country should have a well-defined and costed minimum benefit package and this should be given by providers irrespective of sector public/ private at the stipulated cost.

    “There is quite a lot of profiteering going on in the medical aid sector by a few powerful providers,” he said.

    Rusike noted there is need for a well-defined and well-crafted National Health Insurance.

    Key Recommendations:

    • Strengthen regulation of Medical Aid Societies through the proposed Regulatory Authority
    • Separate functions of regulators and providers of care
    • Implement a well-defined and costed minimum benefit package
    • Establish a Commission to investigate price-setting in the medical services value chain
    • Develop a National Health Insurance scheme to address the country’s healthcare challenges

    By implementing these reforms, Zimbabwe can work towards a more equitable and sustainable healthcare system that prioritizes patient needs over profits.
    May 7, 2025
  • Zimnat, POSB in landmark insurance pact

    Staff Writer

    Local bank, POSB has expanded its product suite through a new bancassurance tie‑up with Zimnat General Insurance, enabling customers to purchase a range of insurance products at any of the bank’s branches nationwide.

    The partnership, announced on May 5, 2025 in Harare, marks a significant step in POSB’s drive to deepen financial inclusion by leveraging its 120‑year‑old retail network to distribute insurance services.

    Under the agreement, POSB clients can now take out motor vehicle insurance, both third‑party and comprehensive, underwritten by Zimnat. Premium payments and renewals for ZINARA vehicle licences and ZBC radio licences are also facilitated through the bank’s till points, streamlining what has historically been a fragmented process for motorists and radio‑owners alike.

    In addition, the bank is rolling out a Hospital Cash Plan that delivers a fixed daily cash benefit during hospitalisation.

    “The plan, underwritten by Zimnat, is designed to provide customers with a daily cash benefit during hospitalisation, helping to cover incidental expenses and alleviate financial stress during recovery,” according to the bank.

    This product reflects POSB’s wider strategy of offering practical solutions that respond directly to the everyday risks faced by Zimbabwean households. Chief executive officer of POSB, Garainashe Changunda, said the arrangement would enhance convenience for clients.

    “This partnership with Zimnat General Insurance allows us to provide convenient and accessible insurance solutions, ensuring that our customers can manage their financial needs under one roof,” he said.

    He added that, “As POSB celebrates its 120th anniversary, the bank reaffirms our dedication to a customer‑centric approach, leveraging partnerships and innovation to rapidly transform customer experiences and continue our legacy of innovation and inclusivity.”

    The bancassurance venture responds to an insurance market in Zimbabwe where penetration remains low, at under 3% of GDP, according to industry estimates. Through integrating insurance distribution into the banking channel, POSB and Zimnat aim to tap into the bank’s extensive footprint, including outlets in remote and rural districts, to reach a broader segment of the population currently underserved by traditional insurers.

    Commenting on the collaboration, Betty Chiware‑Togarasei, chief executive of Zimnat General Insurance, said, “Zimnat is excited to collaborate with POSB, a resilient bank with an extensive network, including in some remote parts of the country, to bring our widely sought‑after insurance services to a broader audience.

    “This partnership aligns with our mission to empower prosperity and provide innovative and reliable insurance solutions to the people of Zimbabwe. We look forward to a successful and mutually beneficial collaboration that benefits our customers and strengthens our communities.”

    Looking ahead, POSB and Zimnat have signalled further product launches in the pipeline, promising customers a comprehensive package of insurance and financial services tailored to their needs, under one roof.

    The alliance underscores a broader trend in southern Africa toward bancassurance as banks seek non‑interest income streams amid economic volatility, while insurers leverage banks’ distribution networks to scale up.
    May 6, 2025