Staff Writer

VICTORIA FALLS – Finance, Economic Development and Investment Promotion deputy minister Kudakwashe Mnangagwa has challenged Zimbabwe’s insurance and pensions industry to position itself at the centre of economic transformation, as the sector marked two decades of regulatory oversight at the IPEC 2026 Symposium.

Speaking as guest of honour at the landmark gathering organised by the Insurance and Pensions Commission (IPEC), Mnangagwa framed the sector not merely as a financial service provider, but as a strategic pillar for national development, social protection and long-term capital mobilisation.

The symposium, held in Victoria Falls, also marks IPEC’s 20th anniversary, a milestone the deputy minister described as “a testament to resilience” and institutional maturity in a sector that has endured some of Zimbabwe’s most turbulent economic periods.

“It is a profound honour and privilege to join you today as guest of honour at this landmark gathering,” Mnangagwa said. “Twenty years is not merely a passage of time. It is an enduring affirmation that institutions built on sound principles, governed with integrity, and driven by clear developmental mandates can not only survive but grow stronger.”

Mnangagwa traced IPEC’s origins to 2006, when Zimbabwe was navigating severe economic instability, describing its establishment as “an act of institutional courage” aimed at safeguarding long-term financial security.

Over the years, he said, the regulator has evolved into a “mature and sophisticated institution” with growing continental and global recognition, underpinned by the adoption of international best practices such as risk-based supervision and stress-testing frameworks.

“IPEC today is not just a regulator,” he said. “It is a guardian of financial inclusion, a steward of policyholder and pension member interests, and a promoter of market confidence.”

Government, he added, was proud of the commission’s progress in strengthening regulatory guidance, consumer education and supervisory standards across the industry.

Insurance sector central to Vision 2030

The deputy minister positioned the insurance and pensions industry at the heart of Zimbabwe’s economic blueprint, linking its development directly to Vision 2030 and the forthcoming National Development Strategy 2.

He said deepening financial markets and expanding inclusion were key strategic imperatives, with insurance and pensions playing a central—not peripheral—role.

“A robust insurance and pensions industry is not peripheral to these goals. It is central to them,” Mnangagwa said.

The 2026 National Budget, he noted, reflects government’s commitment to macroeconomic stability, fiscal discipline and exchange rate management—conditions he described as essential for building long-term savings and investor confidence.

These macroeconomic fundamentals, he said, underpin the viability of insurance products and pension schemes, which depend on predictable inflation and stable currency conditions.

Policy thrust: agriculture, marine and public assets insurance

Mnangagwa outlined a suite of policy initiatives aimed at expanding the reach and relevance of insurance in Zimbabwe’s economy, with particular emphasis on agriculture.

He highlighted the Farmers Basket Agricultural Index-based Insurance programme as a major step toward protecting smallholder farmers against climate-related risks, describing it as “smart economics” rather than social support.

“With agriculture employing the majority of our population, the absence of financial protection is a risk to the entire economy,” he said.

On marine insurance, Mnangagwa stressed the importance of domesticating cover for imports and exports, noting that Zimbabwe’s land-linked trade corridors expose businesses to significant logistical risks.

Mandatory localisation of marine insurance, he said, would help retain premiums within the country and build domestic underwriting capacity.

He also pointed to the insurance of public infrastructure as a major untapped opportunity, revealing that government is working toward systematically covering state assets—many of which remain uninsured.

“This represents a profound fiscal risk,” Mnangagwa said. “We are committed to insuring these assets, which will protect the public purse while creating new business for the industry.”

The transition to accrual accounting standards in government, he added, would improve asset identification and facilitate comprehensive insurance coverage.

Call for industry input on currency reforms

Mnangagwa used the platform to address one of the most critical policy issues facing the sector: Zimbabwe’s proposed transition to a mono-currency framework.

Acknowledging the sensitivity of currency reforms for long-term financial contracts, he assured industry players that government is determined to avoid past mistakes that eroded savings and pension values.

“Insurance policies and pension obligations are intertemporal contracts,” he said. “Any disruption to the currency framework can undermine confidence if not managed carefully.”

He said government is actively seeking technical input from the industry on how the transition should be designed and implemented.

“This is not a consultation for appearances’ sake,” Mnangagwa said. “The technical expertise in this room is indispensable to getting this right.”

However, he expressed concern over the lack of formal submissions from industry players, urging stakeholders to produce detailed position papers.

“We will do what we assume would be right if no papers come,” he warned.

Pre-2009 compensation remains priority

The deputy minister also reaffirmed government’s commitment to resolving one of the sector’s most contentious legacy issues—the compensation of policyholders and pensioners who lost value during the hyperinflation era that culminated in the Zimbabwe hyperinflation.

He described the losses as “one of the most painful chapters” in Zimbabwe’s financial history, noting that they eroded not only savings but also public trust in financial institutions.

“Rebuilding that trust is not optional. It is essential,” Mnangagwa said.

He said finalising the compensation process is among government’s priority targets, calling for urgent collaboration between IPEC and industry stakeholders.

“No amount of regulatory reform or product innovation will restore confidence if the wounds of the past remain unaddressed,” he said.

Macroeconomic stability key to sector growth

Mnangagwa underscored the importance of macroeconomic stability as the foundation for the insurance and pensions industry, noting that long-term financial products require confidence in inflation control and currency stability.

“Without price stability, insurance premiums become meaningless. Without monetary stability, pension savings erode,” he said.

Government, he added, remains committed to prudent fiscal and monetary policies aimed at sustaining recent gains in inflation reduction and exchange rate stability.

Mobilising long-term capital

The deputy minister highlighted the sector’s potential to mobilise domestic capital for infrastructure and economic development, describing pension funds and insurance reserves as critical financing tools.

“Every dollar of premium written and every pension contribution saved is potential capital for roads, energy, housing and technology,” he said.

He pledged that government would continue refining investment policies to ensure that such capital is deployed productively within Zimbabwe.

Expanding social protection

Mnangagwa also called for greater focus on inclusive insurance solutions, particularly for informal sector workers and low-income households.

He pointed to microinsurance, index-based products and community-driven models as key instruments for expanding social protection and reducing vulnerability.

“Insurance is not merely a financial product—it is an instrument of social transformation,” he said, linking the sector’s role to global development priorities such as poverty reduction and economic inclusion.

Industry resilience recognised

Despite economic headwinds—including hyperinflation, currency reforms and global shocks—Mnangagwa commended the industry for maintaining operations and honouring claims.

“That loyalty to Zimbabwe in the face of adversity has not gone unnoticed,” he said.

He pledged that government would work to improve the operating environment so that the sector’s resilience is rewarded.

A call to action

As the symposium continues, Mnangagwa urged stakeholders to use the platform to generate actionable recommendations that will shape the sector’s future.

“The work of this symposium matters not merely to the industry, but to the millions of Zimbabweans whose financial security is at stake,” he said.

Looking ahead, he challenged the industry to ensure that insurance and pensions become accessible to all Zimbabweans.

“Let us commit to the next 20 years in which this industry reaches every corner of the nation and becomes not a luxury, but a life-changing necessity,” Mnangagwa said.