By Abisha Ndoro

The occupational pension fund industry in Zimbabwe is a national crisis. A collective introspection by industry practitioners, boards of trustees, regulators, policymakers and other stakeholders is now necessary in addressing the myriad of underlying problems and reposition pension funds on a platform of long-term sustainability for future generations of retirees.

The purpose of this, and subsequent articles, is to begin a process of stimulating debate as we examine the problems besetting the pensions system and crystallise thoughts around the appropriate reforms in rejuvenating pensions in Zimbabwe. The problems are clearly deep and complex, ranging from an uncertain and unpredictable operating environment, currency instability, leakages through high expense ratios, ineffective regulatory oversight, ineffective investment strategies and asset write offs in some cases.

Thought leadership and a collective effort by all players is now necessary if we are to soberly address the real and very serious problems that are threatening the existence and survival of pension funds as effective vehicles for post-retirement financial provision. This is not about apportioning blame.

This is driven by a real and genuine desire to analyse the problems and institute the appropriate structural reforms. While there is no doubt that the economic misfortunes that have continued to beset Zimbabwe in the last three decades largely contributed to the problem, I firmly believe that there are other serious systemic issues within the pension system that also contributed to the wanton destruction of value in members’ pensions.

The sober reality is that we have a generation of pensioners who have retired into abject destitution and realistically very little can be done at this stage. The system has totally failed them. As an industry, we should draw real lessons from the past two decades and begin a process of instituting real reforms and interventions in reinventing the industry and safeguarding future generations of retirees.

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