2026 Budget Prioritises Microinsurance to Shield low-income Zimbabweans
Government has announced plans to strengthen the microinsurance framework to enhance social protection for low-income households and micro, small and medium-sized enterprises (MSMEs).
According to the 2026 National Budget Statement, microinsurance continues to play a vital role in cushioning vulnerable communities against financial shocks, with statistics pointing to at least 70 per cent of the population, being uninsured.
The Budget Statement emphasizes that microinsurance serves as a crucial safety net by mitigating risks and vulnerabilities faced by low-income earners and MSMEs. These include illness, death, property loss, crop failure and other unexpected events that can push families and small businesses into deeper poverty. Microinsurers currently operate under the auspices of the Microinsurance Framework.
“Government, however, seeks to strengthen this framework to enhance the availability and uptake of microinsurance, thereby empowering insurers to develop tailored products that meet the specific needs and realities of low-income households and SMEs,” the Budget Statement states.
By refining the regulatory environment and promoting innovation in product design, Government aims to position microinsurance as a key pillar of social protection, economic resilience and inclusive growth. The measures are part of broader efforts under the 2026 Budget to ensure that no Zimbabwean is left behind in accessing essential financial risk-mitigation tools.
The Budget Statement also acknowledged the growth experienced in the insurance and pensions industry between September 2024 and September 2025, which saw the asset base for the insurance sector record a 50 per cent increase from about ZiG20 billion reported as at 30 September 2024 to about ZiG30 billion as at 30 September 2025.
The insurance sector recorded about 17 per cent increase in US$-denominated revenue, recording about US$275 million for the nine months-ended 30 September 2025 compared to US$235 million recorded for the same period in 2024.
For the pension sector, the total industry assets for fund business stood at about ZiG75 billion, which is approximately US$2.8 billion (using the official exchange rate). This represented an increase of about 40 per cent from about ZiG54 billion as at 30 September 2024.
“Total expenditure for the period under review was US$172.87 million (ZiG4.6 billion), million (ZiG4.6 billion), compared to US$91.4 million in the prior year. A total of US$130.7 million (ZiG3.5 million), which made up 75.6% of total expenditure, was incurred towards benefits expenditure,” reads the Budget Statement.
For more on this, you can read the National Budget Statement from page 53. You can download the National Budget Statement here.