Source: Pension fund grows assets to $600m, fuels national development – herald
Rutendo Nyeve
Victoria Falls Bureau
THE Public Service Pension Fund (PSPF) has instituted comprehensive measures to protect and grow its assets, ensuring long-term retirement security for its beneficiaries through a diversified portfolio of assets now valued at about US$600 million.
The fund’s chief investment officer, Dr Farai Gaba, revealed this in an interview on the sidelines of the Zimbabwe Association of Pension Funds (ZAPF) 50th Annual Conference underway in Victoria Falls.
Dr Gaba said the fund is also actively advancing the Government’s investment agenda by channelling pension capital into national priority sectors, playing a key role in infrastructure development, affordable housing, mixed-use urban regeneration, and solar energy investments, all aligned with Vision 2030 and the National Development Strategy 1 (NDS1).
The fund has delivered housing projects for civil servants and university communities, supported urban land delivery and partnered with local authorities on smart city and industrial hub initiatives.
“The fund maintains a diversified portfolio across asset classes including real estate, infrastructure, equities, fixed income and offshore investments, which are designed to reduce risk and enhance long-term returns,” said Dr Gaba.
“Up to 15 percent of the portfolio is invested offshore to preserve value in hard currency and access global markets using a cautious allocation model to minimise volatility. PSPF invests in developmental projects such as civil servants housing, solar infrastructure and commercial property that generate sustainable income while supporting national priorities.”
Dr Gaba said all major projects undergo independent technical and financial appraisals before commitment and upon completion. There is also oversight from external asset managers and governance ensured through active oversight by the Board and Investment Committee, guided by an Investment Policy Statement (IPS).
The fund also partners with reputable firms to strengthen investment capacity and all measures are driven by a commitment to preserve capital, maintain income adequacy and protect the real value of pensions over time.
“The PSPF has delivered housing projects for civil servants and university communities, supported urban land delivery and partnered with local authorities on smart city and industrial hub initiatives,” said Dr Gaba.
“In the energy sector, the fund has backed solar generation and power infrastructure to enhance energy access and sustainability. Additionally, PSPF contributes to the deepening of Zimbabwe’s capital markets by participating in listed equities, supporting real estate investment vehicles and promoting financial sector stability through long-term institutional investments,” he said.
“All projects are subject to independent technical and financial appraisals to ensure transparency and alignment with the national development agenda. Through these efforts, PSPF is positioning pension capital as a transformative force for inclusive economic growth.”
Some of the projects include Madokero Creek, Madokero Mall and Varsity Heights, which were officially launched by President Mnangagwa and have created jobs, supported local businesses and strengthened value chains.
Dr Gaba said the fund is implementing a range of contemporary risk management measures to safeguard the sustainability of pension benefits including diversified asset allocation, actuarial valuations, investment policy statement, independent project appraisal, offshore investment hedging governance and oversight, liquidity management and cybersecurity and operational risk controls.
“These integrated measures ensure that the PSPF is positioned to meet its long-term obligations while adapting to contemporary economic and demographic risks,” said Dr Gaba.
In Zimbabwe, the fund manages assets valued at approximately US$600 million, with the portfolio value fluctuating based on market conditions. The fund’s growth is primarily driven by member contributions and investment returns, currently averaging a real return of 7,5 percent.
The PSPF’s investments in solar energy and power infrastructure are improving access to clean energy and supporting sustainability.
These initiatives not only stimulate economic growth but also enhance standards of living and create long-term value for current and future pensioners through stable, inflation-protected returns.
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