Pensions Industry calls for confidence building in financial sector
The Zimbabwe Association of Pensions Fund (ZAPF) says policies issued by regulators can either enable or disable the Pensions Industry which is a key enabler to economic growth by virtue of its ability to mobilise long-term funds.
Zapf chairperson, Rutendo Magorimbo at the on-going conference in Victoria Falls said the funds can be used to drive economic activity by investing those funds in infrastructure development, debt or equity to drive the manufacturing sector or other private equity investments in various sectors of the economy.
“In order to keep those funds coming from the investors that are the pension fund members, there is need to have confidence in the financial sector,” she said.
She said the conference should be used to discuss topical issues in the pensions industry with the hope of crafting solutions that ensure that the industry is run in a sustainable manner and that it plays its rightful role in the development of our economy.
“Considering the repercussions of the global pandemic and ongoing challenges with our retirement systems our leading theme for the conference will be “THE RETIREMENT INDUSTRY POST THE PANDEMIC.”
“While we strive for sustainable long-term returns, we must also deal with the current realities of high inflation, dwindling disposable incomes and the difficult decisions that need to be made on how to split that small income between being able to eat today and saving for retirement.
“The discussions that will take place throughout the conference should challenge us to introspect and brainstorm on what the possible solutions could be,” she said.
Magorimbo said in navigating the new era of pension fund investing, we must redefine our investment personnel and it is now requisite for us to include both human intelligence and artificial intelligence in making investment decisions.
She said the industry should now realize that the coronavirus era is far from over and new variations keep coming up and the virus is likely to develop more mutations.
“This imposes an uncertain economic environment as new policies could be laid down that affect pensions.
“We, therefore, call upon today’s investment professionals to prepare for a dynamic future by learning about the market factors that impact our world and applying the skills required to shape that future,” she said.
She added that there is need to take a leadership role in how the world emerges from the disruption of the global pandemic and indeed our own economic shocks as a nation, by rebuilding our economy and businesses and ensuring that our systems are robust enough to withstand any future shocks that could arise.