Harare - Finance and Economic Development Minister, Prof Mthuli Ncube said the Transitional Stabilisation Programme (TSP) is targeting insurance penetration to reach 20 percent, with various affordable micro-insurance products via the mobile phone targeted to emerge as the leading drivers of insurance penetration.
TSP main thrust is line with President Emmerson Mnangagwa vision of achieving a prosperous and empowered upper middle income society by 2030.
“Drawing from offshore experiences, the TSP also targets review of some of the stringent insurance industry licensing requirements, including for brokers and underwriters.
“In order to address the perennial arrears problem, Government will, over the TSP, institute a number of public sector pension reforms, including rationalising and harmonising pension contribution rates for parastatals and local authorities.
Government has mandated the Insurance and Pensions Commission to unpack the findings and recommendations of the Commission of Inquiry into the Conversion of Insurance and Pension Values from Zimbabwe dollars to United States dollars, and come up with an implementation framework that will address complaints relating to low values, low confidence, corporate governance challenges and high expense ratios, among other things,” said Ncube.
Meanwhile, Ncube said the TPB will focus the mobilisation deposits through promotion of a culture of saving and investment, to engender the role of the banking sector in financial intermediation, particularly in supporting productive and export sectors to at least 90 percent of total banking sector lending.
He added that the TSP will continue to encourage use of plastic money through digital platforms.
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