Insurance and pension laws in Zimbabwe are backward, according to Mr Daniel Ndlela, a former economics professor at the University of Zimbabwe.
Speaking at a virtual conference organised by the Zimbabwe Economics Society (ZES), he called for a clear financial legislative agenda for the sector.
He also urged the authorities to create strong integrated pension schemes which avoid multiplicity or duplicity of roles and responsibilities, according to a report in New Zimbabwe.
Long-term economic development
Speaking at the same virtual meeting, Mr John Mangudya, governor of the Reserve Bank of Zimbabwe (RBZ), said that the financial sector, including insurance companies and pension funds, needs to make available funds for economic stability that would engender long term development.
He suggested bringing together financial-sector players like the Insurance and Pensions Commission, Securities Exchange of Zimbabwe, and the Reserve Bank to work hand-in-hand for national economic growth.
Mr Mangudya said, “The pillar of financial sector development strategy or plan is stability. Stability precedes growth and growth requires financial resources. These financial resources come from long-term savings i.e. from pension funds and capital markets, and short deposits from banks.”
He said, “We are trying to resolve the inclusivity of financial sector players and put all the savings in one envelope. The strategy is to grow the economy and currently, we have a number of financial resources which are disjointed across the sector and all these to be placed under one roof.”
Mr Mangudya also called for the harmonisation of various laws and governance systems to achieve the desired results.
President's warning to financial institutions
Separately, Zimbabwean President Emmerson Mnangagwa has vowed to take action against companies in the financial services industry that he accused of profiteering, according to a Bloomberg report.
“There are sharks in the financial sector,” Mr Mnangagwa was quoted as saying by government spokesman Nick Mangwana on Twitter. “We now know who they are. We are dealing with them.”
Mr Mnangagwa didn’t identify the companies he was talking about. He previously issued warnings to private companies he blames for undermining his efforts to turn around an economy plagued by annual inflation of 241% and foreign-currency shortages.