Pension funds seek nod to invest offshore…as IPEC looks to restructure the architect of the industry
LS (Own corresponded)
HARARE, Pensions Industry players are engaging government through regulator, the Insurance and Pensions Commission (Ipec) to be allowed to invest outside Zimbabwe to preserve value.
The pension’s funds recommendation comes in the wake of loss of value and savings by Zimbabweans at the abolition of the ZimDollar and the subsequent adoption of the multicurrency system.
“As an industry we have been lobbying even prior dollarization to invest in markets outside Zimbabwe to avoid eventualities that erodes value and saving.
“Our submissions are that Pension funds be allowed to get some assets offshore at a threshold of even 25%, sitting in countries like South Africa, this would have preserved value opposed to what happened,” an expert Tassius Chigariro said.
Chigariro of Old Mutual said this in a presentation “Pensions: Planning for the future” at a Zimselector/Ipec mentoring programme for journalists in Harare.
He said currently, there are some pension funds from South Africa that invested in Zimbabwe and also lost value at dollarization and coming back.
According to Chigariro said pension funds should diversify their investment portfolios to alternative investments such as infrastructure development, telecommunications, housing where they can diversify exposure from money markers and equities markets. Zimbabwe’s pension funds has an asset base of $4,3 billion.
Meanwhile, IPEC head of Pensions Josphat Kakwere making his presentation at the same workshop said the regulator is currently developing a raft of measures which will change the landscape of the pensions industry.
He said stakeholder engagements would commence soon. Among the new measures include review of the legislation; improvements on corporate governance, restructuring the architect of the industry as well open it up to competition.
