Harare, (New Ziana) – The Public Service Pension Fund (PSPF) has announced plans to enhance its investment governance framework, mobilise long-term savings, and expand its participation in capital markets during the National Development Strategy 2 (NDS-2) period.
The NDS-2 (2026–2030) policy framework, launched by President Emmerson Mnangagwa late last year, builds on the economic reform foundation established by the Transitional Stabilisation Programme (2018–2020) and the first National Development Strategy (NDS-1, 2020–2025).
As Zimbabwe’s largest institutional investor, with a membership of over 400,000 public servants, the PSPF is expected to play a pivotal role in anchoring domestic savings mobilisation and driving long-term capital formation.
“The transition from an unfunded pay-as-you-go civil service pension model to a funded scheme will allow for the accumulation of savings that would otherwise have been consumed. This transition enhances fiscal sustainability while restoring confidence in pension funds as vehicles for sustainable domestic resource mobilisation and investment. The Fund will act as a catalyst for infrastructure-led growth, supporting macroeconomic stability, devolution, and employment creation.
“To expand productive investment, the Fund will develop and participate in long-term financial instruments such as infrastructure bonds, Real Estate Investment Trusts (REITs), and green bonds. These instruments will promote financial deepening, enhance asset valuation capacity, and support project costing and long-term investment planning,” the NDS-2 document notes.
The Government will ensure the timely remittance of pension contributions by Treasury to strengthen both liquidity and actuarial solvency. In addition, the Public Service Pension Fund (PSPF) will align its investment strategy with national development priorities, focusing on climate-resilient infrastructure, clean energy, agro-industrial value chains, housing and health infrastructure, as well as enhancing export competitiveness.
“The Fund’s diaspora-linked housing and investment products will further enhance foreign exchange inflows and support economic growth. Pension-backed public-private partnerships will be expanded under NDS 2, leveraging Public Service Pension Fund resources to co-invest in large-scale infrastructure projects and crowd-in private sector capital while maintaining prudent risk management,” reads the document.
These interventions will reinforce the connection between pension savings, infrastructure investment, and industrial development, driving growth in domestic credit markets while fostering employment across downstream industries.”
New Ziana
