Ipec banks on US$75 million investment

THE Insurance and Pensions Commission (Ipec) is banking on the growth of its US$75 million investment in Kuvimba Mining House to generate more funds for compensation of policyholders who suffered losses during currency adjustments in 2019.
As part of wide ranging economic reforms, the government introduced a market determined exchange rate in 2019 that entailed transition from a fixed rate of US$1:$1 resulting in policy value losses.

“… the US$75 million announced in the national budget to compensate for the losses is an investment asset, which yielded its first dividend of US$400 000 in 2021.

“The annual dividends will be distributed to pensioners starting with the most vulnerable. Future dividends will be distributed to active members who will be retiring in future. We also expect the value of the initial US$75 million investment to continue to grow thereby increasing future dividends,” Ipec commissioner, Grace Muradzikwa told The Financial Gazette last week.

There are indications that the value of the investment has since grown since the dividend payment.
Kuvimba took over the ownership and management of several mining assets in Zimbabwe during the second half of last year.

Its subsidiaries include Freda Rebecca Gold Mine, Bindura Nickel Corporation, Shamva Gold Mine and Zim Alloys.
There are also plans to list Kuvimba on the US$ denominated Victoria Falls Stock Exchange.
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