Treasury, pension funds in talks over infrastructure capital raising models

By Stanley James, Business Editor

ZIMBABWE’s Treasury is in talks with pension funds over the possibility of raising capital for infrastructure development projects across the country.

With pension funds boasting of huge capital outlay, Treasury has therefore seen it necessary to tap into the funds for infrastructure development projects.

“We have seen it necessary that the issue needs engagements on how the pension funds can be incorporated into the floating of infrastructure bonds as well as explore possibilities of ensuring the funds are floated for completion of projects,” said Professor Mthuli Ncube, the Minister of Finance and Economic Development.

For the pension funds, the focus is centred on viable returns accruing from infrastructure financing.

“It is the need to ensure that infrastructure financing models are viable in terms of returns and sustain our operations. Remember the funds are from our clients and the need to ensure that the money is used efficiently is a key priority,” he said.

Insurance and pensions funds regulatory authorities are optimistic the sector will positively contribute to economic development.

“The sector has not been spared from the effects of the COVID- 19 pandemic, but as the economy reopens, there are possibilities of further growth and sustained strong balance sheets for the entire sector,” said Dr Grace Muradzikwa, Commissioner with the Insurance and Pension Commission.

In a related development, Treasury this Thursday met players in the insurance and pension funds to assess recovery, growth trends, identify opportunities, outlook trends, current challenges and possible solutions.