Source: Invest in hotels, lodges, minister tells pension funds -Newsday Zimbabwe
PENSION funds should consider investing in new hotels and lodges in Masvingo amid increased demand, a provincial affairs minister has said.
The call, made by Masvingo Provincial Affairs and Devolution minister Ezra Chadzamira, comes at a time when the investment by pension funds has already transformed communities in places such as Masvingo.
It also comes when the government has acknowledged that pension funds are no longer passive custodians of retirement savings but active architects of economic transformation.
The billion-dollar pensions industry continues to show resilience, reaching total assets worth US$2,63 billion in the second quarter of the year on the back of new investments, contributions and fair value gains.
“Tourist arrivals in the province are projected to grow by 8,5% annually, yet our hospitality infrastructure remains underdeveloped. There is an urgent need for at least 1 500 new hotel rooms by 2027 to meet demand,” Chadzamira said at the Zimbabwe Association of Pension Funds (ZAPF) Principal Officers and Chairman Convention in Masvingo on Friday last week.
“Pension funds can invest in eco-lodges, boutique hotels and conferencing facilities, tapping into a sector with high returns and strong growth potential.”
He said the pensions industry invested billions across the province in infrastructure and social development projects.
“These include the construction of low-cost housing units in Chiredzi and Gutu, the refurbishment of clinics in Zaka and Bikita and the development of commercial properties in Masvingo urban,” Chadzamira said, adding that the investments also created jobs, supported SMEs and enhanced the quality of life for thousands of residents in addition to improved access to shelter and healthcare.
He said urbanisation was driving a backlog of over 11 000 units across Masvingo urban, Chiredzi and at growth points, saying pension funds could unlock value by “investing in mixed-use residential developments, combining affordable housing with retail and commercial spaces”.
Chadzamira urged pensions funds to explore solar mini-grid projects in the lowveld, where high solar radiance has supported a 5-megawatt pilot grid in Chikombedzi, powering 2 000 households and 50 enterprises.
ZAPF chairperson Phoebe Chawasarisa said the pension sector in Zimbabwe had been at the heart of social and economic development since independence.
“We have financed industries, supported infrastructure and provided a vital safety net for millions of Zimbabwean families. The legacy of those who came before us, the founders, trustees, policymakers and members, is a foundation we must celebrate and preserve,” she said.
“However, our legacy is not without scars. We cannot speak about pensions in Zimbabwe without acknowledging one of the most painful chapters in our collective history.”
Chawasarisa was referring to the period leading to 2009, marked by hyperinflation and the subsequent transition to dollarisation that brought a catastrophic loss of value for pensioners.
“Lifetime savings, faithfully contributed over decades, were wiped out in real terms. The promise of retirement security was broken and the confidence of members was tested,” she said.
“This was not just a financial loss; it was a loss of trust between generations, between savers and the system meant to protect them. Yet, from this trauma, we have drawn important lessons. As custodians of the pension system, we must ensure that such a loss of value never happens again.”
The convention was held under the theme, 50 Years of Pension Leadership: Sustaining Legacies, Shaping Futures.
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