GOVERNMENT has sought to reassure Zimbabwe’s insurance and pensions sector that its planned transition to a mono-currency system will not erode the value of long-term contracts, as authorities invite industry input to help shape the reform.
Speaking at the Insurance and Pensions Symposium in Victoria Falls on Wednesday, deputy Finance minister Kudakwashe Mnangagwa said the proposed shift would be carefully managed to safeguard policyholder and pension fund confidence.
“I wish to directly address one of the most consequential policy matters facing the insurance and pensions industry today, the government's vision of transitioning to a monocurrency framework,” Mnangagwa told delegates.
He acknowledged that currency reforms carry significant risks for long-term financial instruments such as insurance policies and pension obligations, which are structured to be honoured over extended periods.
“Any disruption to the currency framework can, if not managed carefully, erode the real value of these obligations and undermine policyholder and pension member confidence,” he said.
Zimbabwe’s financial sector remains sensitive to currency reforms following the 2009 hyperinflation episode, which wiped out savings and pensions and severely damaged trust in long-term financial products.
Mnangagwa said government was determined to avoid a repeat of such losses.
“It is government's firm commitment that the envisaged monocurrency transition will not disrupt the insurance and pensions industry. We are mindful of the lessons of history, and we are determined not to repeat the mistakes of the past,” he said.
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Authorities are now seeking technical input from industry players to guide the design and implementation of the policy.
Mnangagwa said government was engaging insurers and pension funds to ensure the transition protects policyholders, preserves the actuarial integrity of pension schemes and maintains market confidence.
“This is not a consultation for appearance’s sake… We are listening,” he said, urging the Insurance and Pensions Commission (IPEC) and industry associations to submit detailed recommendations.
The proposed mono-currency framework forms part of broader efforts to entrench macroeconomic stability, which government says is critical to the viability of long-term financial products.
Mnangagwa noted that insurance and pension contracts depend heavily on stable inflation, predictable exchange rates and confidence in the value of money over time.
“Without price stability, insurance premiums become meaningless; without monetary stability, pension savings erode,” he said.
He added that government was committed to fiscal discipline, prudent monetary policy and exchange rate stability to support the sector.
The insurance and pensions industry has long argued that currency volatility remains one of the biggest threats to its sustainability, particularly in a market where liabilities often stretch over decades.
Mnangagwa said government viewed the sector as a key partner in economic development, with pension funds and insurance reserves seen as critical sources of long-term capital for infrastructure and growth.
He also reiterated government’s commitment to resolving the long-standing pre-2009 compensation issue, describing it as essential to restoring confidence in the sector.
“The loss of life savings… represents one of the most painful chapters in the financial history of Zimbabwe,” he said, calling for urgent collaboration to conclude the compensation process.
“Rebuilding that trust is not optional. It is essential to the future of the insurance and pensions industry. No amount of regulatory reform, no amount of product innovation, and no amount of marketing will restore public confidence in long-term savings if the wounds of the past remain unaddressed.”
The symposium, hosted by IPEC, marks 20 years since the regulator’s establishment and has brought together policymakers, regulators and industry executives to discuss the future of the sector.
