Zimbabwe pension industry 'on the road to recovery'

May 09, 2011

The life and pension industry in Zimbabwe is going to make a quicker than expected recovery, one industry figure has remarked.

Speaking to the Financial Gazette, Managing Director for Old Mutual Zimbabwe's life and pension unit Jonas Mushosho explained the sector is likely to be back to normal within the next five years.

"Various experts have different time frames, but the majority believe that by 2016 we should reasonably see ourselves going back to our old days," he stated.

The publication asserted that many companies are reviving annuity schemes and pre-dollarisation policies, which is contributing to the recovery.

Furthermore, there has been a slowdown in the number of schemes surrendering to retrenchments, while the recovery of incomes earned by civil servants will also reduce the time it takes the market to correct.

The country's economy as a whole is also doing well, the news provider reported, as Treasury accounts were kept in surplus due to the quickening of income taxes on employees and company profits.