Dhemba, Gumbo & Nyamusara/ ZIMBABWE REPORT

Social security in Zimbabwe
lOTHAM DHEMBA, P. GUMBO AND 1. NVAMUSARA

ABSTRACT
This study of social security in Zimbabwe aimed to identifY
existing formal and non-formal social security systems and
assess their viability and their potential for strengthening. Two
non-formal social security schemes were selected for in-depth
analysis in Phase II: these were the chief's granary (Zunde
raMambo) and burial societies. Most people are covered by non-
formal arrangements and the family and community still playa
critical role in social protection even though poverty has impact-
ed negatively on their ability to do this effectively. Churches are
another source of social security. Semi-formal arrangements
include burial societies, savings and credit clubs, Their viability
is compromised by high levels of poverty in all areas but they
could be strengthened through employment creation and the
funding of specific community income-generation projects.

Phase I: Overview
Introduction
ZIMBABWEHAS A FRAGMENTEDsocial security system offering social
insurance and social assistance as its mainstream schemes. These
schemes pro~ide rudimentary protection to a relatively small 'number
of people in formal employment. Existing alongside the formal social
systems consisting of traditional
security systems are non-formal

I School of Social Work, University of Zimbabwe, Harare -----
2 School of Social Work, University of Zimbabwe , Harare
J Provincial Social Welfare Officer, Harare Province, Zimbabwe

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security provision and semi-formal arrangements which attt:lilpt to
compensate for the inaccessibility and inadequacy of formal ones.

Social security in pre-Independence Zimbabwe
In Zimbabwe, as is the case in most of Africa, collective responsibility,
historically rooted in the extended family system, has always met the
social security needs ofindivitlual members. However, with the advent
of the colonial State and the introduction of a cash economy,
tradi-
tional social support systems gradually weakened. The migration of
able-bodied men from rural to urban areas in search of waged employ-
ment necessitated new arrangements for meeting social security needs.
The exodus to urban areas depleted the countryside of much-needed
labour and weakened a social security arrangement which was anchored
on the land and the institution of the family. This exacerbated the
underdevelopment of rural Zimbabwe and compromised the capacity
of peasants, consisting mainly of women, children and older persons,
to meet their social security needs.

Formal social security in the early colonial era
During the colonial era formal social security protection
for the
indigenous people was almost non-existent. This legacy still prevails.
A major landmark in providing formal social security during the
colonial era was the Old Age Pensions Act of 1936. This scheme
provided old age pensions to non-Africans over 60 years only who
had been resident in the country for 15 years or more Clarke (1977).

Social assistance, also known as public assistance in Zimbabwe, was
also mainly the preserve of white settlers. An insignificant number of
urbanized blacks benefited from this scheme,
in the form of bus
warrants for repatriation to their rural homes. Ironically, the objective
ofthe public assistance scheme at the time was "to relieve distress and
to rehabilitate
(Riddell 1981:172). Private occupational pensions were also a feature
of social security in colonial Rhodesia and catered exclusively for
white workers. According to the Whitsun Foundation study (1979), less
than half the Africans in formal employment in 1976 were participants

those permanently

or temporarily

disadvantaged"

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Dhemba, G~mbo& Nyamusara/ ZIMBABWE REPORT

in these programmes. Blacks were viewed as temporary migrants in
urban areas who would relocate to their rural homes at the end of their
working life.

Thus. during the colonial era the only meaningful social security
schemes, that is, the Old Age Pensions Scheme, public assistance and
occupational pensions, were designed and implemented to serve the
interests of tp-e white settlers. Though a pensions scheme for agri-
cultural workers was introduced by the Rhodesian National Farmers
Union in October 1975 it had few beneficiaries. Th.e pensionable age
was set at 60 when life expectancy at the time was about 50. Not many
indigenous workers, therefore, reached retirement age (Clarke 1977).
The white settler government was motivated by the desire to attract
and retain white immigrants by providing conditions and services
comparable to those obtainable in Britain. But indigenous blacks were
. expected to take their own initiative or use traditional social support
systems. This was in an environment where exposure to western
institutions through industrialization and urbanization had undermined
the capacity of the extended family to provide support to its members.
Indigenous people were thus condemned to destitution.

During this era there was therefore heavy reliance on non-formal
social security systems. Indigenous people depended on the peasant
economy,
for social
protection.

the extended family and community support

Social security systems after Independence
At Independence the government of Zimbabwe endeavoured to address
the discriminatory nature of existing formal social security prgrammes.
Radical changes were 'effected in administering and implementing
social insurance and public assistance. The administration of public
assistance was decentralized
level and offices were
established in each ,of the 57 districts in the country. Public assistance
provisions were extended to most people,
including those in rural
areas. However,
this public assistance scheme is seriously under-
funded and most needy people fail to access benefits from it (Kaseke
et aI., 1998).

to district

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Government also introduced a Pensions and Other Benefits Scheme in
October 1994. This is a social insurance scheme which is universal for
formally-employed workers in the private sector. It was introduced
owing to the realization
industrial workers were retiring to
destitution. Coexisting with the Pensions and Other Benefits Scheme
is the Workers' Compensation and Accident prevention scheme and
private occupational pensions schemes. The government also runs a
pension system for civil servants and politicians.

that

Formal social security protection in Zimbabwe is inadequate and
It is still the preserve of those in formal
exclusive in coverage.
employment. Most of the schemes are contributory and therefore most
people lack the capacity to participate in them. Because of all this, non-
formal systems have also become major institutions in providing social
security. Such institutions include, to a limited extent,
the extended
family,mutual aid groups like burial societies, savings clubs and church
groups. There are also community arrangements
such as the chief's
granary (the Zunde). Non-formal social security has become the only
sources of security for most people in Southern Africa (von Benda-
Beckmann and Kirsh 1999).

Literature review
One of the earliest studies on social security in Zimbabwe was by the
Whitsun Foundation in 1979 which found that
less than half the
indigenous Africans in formal employment were catered for. A study
in 1993 found that communal farmers in Mudzi and Mutoko districts
in Zimbabwe lacked formal social security protection and relied on
non-formal systems (Kaseke 1993).

Most Zimbabweans,

that is, the unemployed, communal

farmers,
domestic workers and informal sector operators do not have formal
social security because they cannot afford contributory schemes. This
is not merely a matter of economics. A number of countries
in the
developing world,
and
Barbados, have extended limited protection to some sectors ofthe self-
employed population. In the Philippines,
for example, coverage was
extended to farmers and fisherman (Schultz 1992). The irregularity of

including Jamaica, Egypt,

the Philippines

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Dhemba, Gumbo & NyamusaralZIMBABWE REPORT

the incomes of the self-employed and the difficulties in enforcing com-
pliance in the payment of premiums are the major obstacles to extending
protection to this sector,

In 1994 the Zimbabwe Farmers Union (ZFU) and ZIMNAT Insur-
ance Company launched a contributory
fund for ZFU
members Makora (1999). Makora found, however, that participation
in the scheme by the smallholder farmers was very low. He attributes
this low take-up rate to low and irregular incomes and problems in
gaining access to ZI:U offices where premiums are paid.

pensions

With respect to non-formal systems, Hall (1987) carried out a study
of burial societies in Harare. He found that there were 134 societies
in Harare and observed that burial societies had started to develop in
rural areas where previously, the extended f~miIy provided protection.
There are now many religious denominations which have women's
sections aimed at providing spiritual, economic and social support to
those experiencing socioeconomic problems (Gumbo 1998). Benefits
range from assistance to cover the costs of funerals and weddings, to
visiting the sick, praying and counselling.

Rotating savings and credit schemes are the two common forms of
savings clubs among rural women but they have also become popular
among men (Madembo 1998). In a study of club members in Nyameni
in Marondera it was found that savings clubs are increasingly being
viewed as a strategy for enhancing the socioeconomic status of urban
and rural women (Chinake 2000). In addition the Friedrich Ebert Found-
ation,
the ILO l!nd German Technical Assistance to Zimbabwe are
among the organizations trying to promote non-formal social security
arrangements
of
Zimbabwe, an umbrella organization for employers and employer org-
anizations in Zimbabwe, is working on a research project on extending
social security protection to the growing informal sector.

in Zimbabwe. The Employers Confederation

Problem statement
There is no consensus on what constitutes social security. However,
the ILO definition that focuses on the protection and welfare of
industrial workers is widely used. Consequently, social security studies

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have tended to focus on formal social security schemes which cater for
only a minority of the population. In poor countries such as Zimbabwe,
those in formal employment are in a minority. The majority, who are
involved inthe informal sector, communal farming or domestic work rely
on non-formal social security arrangements. Unfortunately, not much is
known about either formal or non-formal schemes in terms of their
viability, how they can be strengthened,
the extend of coverage and the
contingencies catered for.

Justification for this study
There is increasing social
insecurity in the country as a result of
inadequate social security protection. HIY/AIDS makes it difficult for
the extended family to support
poor
economic performance compounds the problem. The formal sector
is shrinking and retrenchments and unemployment are growing.

its members and Zimbabwe's

The studies that have been carried out on social security in Zimbabwe
have tended to be fragmented, for example, Hall (1987) and Chinake
(2000). They have also tended to focus either on gender, rural or urban
areas (Chinake 2000, Gumbo 1998, Kaseke 1993 and Kaseke ed.,
1998). There is therefore a need for more comprehensive
studies of
both formal and non-formal social security systems in Zimbabwe.

A social security study addressing

both sectors was therefore
considered to be a useful framework for discovering the viability of
existing social protection measures (both formal and non-formal) with
a view to examining their nature, the contingencies covered and the
benefits and coverage of the schemes. This is necessary in order to
examine the potential for the strengthening of these schemes.

Methodology
As the purpose of the first phase of the project on social security in
Zimbabwe was basically to map out existing social security schemes,
the population covered included social security institutions, experts
in this area, participants in both rural and urban areas and organizations
supporting such schemes. The study was executed by a team of three
researchers and a research assistant who was engaged to collect data.

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Dhemba, Gumbo & NyamusaraJZIMBABWE REPORT

Relevant government ministries and departments and local authorities
were contacted before collecting data and they acceded to the request
to carry out the study and to facilitate the gathering of data. The study
was carried out from September 2000 to the beginning of January 200 I.
Study location
Out of the ten provinces in Zimbabwe, four were selected. These were
Harare, Mashonaland East and West and Matebeleland North. The areas
covered were Harare, Marondera urban and Murewa rural (Mash-
onaland East), Chinhoyi urban and Zvimba rural (Mashonaland West)
and Bulawayo urban and Ntabazinduna rural in Matebeleland North.
These areas were selected because they represent a cross-section of
the population and the social security institutions in the country. Harare
was an obvious choice as this is where most organizations involved in
administering or providing financial or other support to social security
programmes have their offices.
Study population
Social security organizations, mutual aid groups and participants in such
schemes were targeted. The administrators of social security schemes,
organizations providing technical or financial support to the same and
members of mutual aid groups were interviewed. The study population
compromised the following: representatives of organizations dealing
with social security issues; organizations supporting mutual aid groups
and other social security programmes; members of mutual aid groups
such as burial societies, savings clubs and community leaders and
experts in the area of social security. Table I shows some of the non-
formal systems covered.

Table I Mutual aid groups covered

Chinhoyi
Harare
Bulawayo
Marondera

Savingsclubs
5 urban 4 rural
4 urban
4 urban 2 rural
3 urban 3 rural

Burial societies Chiefs granary

4 urban
4 urban

1 rural

1 rural

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Methods of data collection
Multiple data gathering methods were utilized in order to obtain both
quantitative and qualitative information. The researchers
reviewed
country-based literature and documentation on both formal and non-
formal social security systems.

Structured interviews with an interview schedule were used to obtain
information from members of burial societies, church groups, savings
clubs, community leaders (chiefs, councillors and headmen). Interview
guides were used for representatives from NSSA, the Department of
State Pensions, non-governmental organizations and donor agencies
as well as for members of the community through focus group discus-
sions (FGDs) and social security experts. Information on mutual aid
groups was obtained from community services officers
(munici-
the Self-Help Development Foundation and through the
palities),
snowballing technique.
Limitations of the methodology
It was not possible to get used disaggregated data from the National
Social Security Authority and the Department of Pensions as these
organizations were still in the process of computerising their systems.
It was also not possible to cover more than three provinces because
of financial and time constraints. The researchers, however, obtained
valid and useful information which was used to select two non-formal
schemes for in-depth analysis.

social security schemes

Formal
This section briefly outlines various formal socIal security schemes
in the country.
Schemes provided by Department of State Pensi.ons
State Service Pensions (non-contributory)
This scheme is provided under the State Service Disability Benefits Act
(Chapter 16:05). Compensation as a result of the death or the injury of
persons employed by the State arising in the course of official duties is
paid in accordance with this Act. Those who die or are injured while
assisting the Defence Forces, the Police Force or the Prison Service are
also covered. The scheme is non-contributory and its funds are wholly

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Dhemba, Gumbo & NyamusaraiZIMBABWE REPORT

(non-contributory)

allowances

In 1998 54,485 pensioners

provided by Government.
In 1999 there were a total of 3927 such
pensioners and the number was increasing. A total of$33,570,548 was
distributed to pensioners under this scheme in 1998.
War Pensions Scheme (non-contributory)
This provides social security in accordance with the War Pensions Act
(Chapter 11.14) for those who fought during the Second World War.
Those injured while providing military service during the Second World
War (1939-1954) are paid pensions, allowances and other benefits. In
1999 there were 167pensioners who were benefiting from the scheme at
a total cost of Z$l ,038,025 per year.
War Veterans Pensions Scheme
War veterans who took part in the liberation war from 1962-1980 re-
ceive pensions
in accordance with the War Veterans Act (Chapter
11:15). Dependents of deceased war veterans also receive pension
benefits.
received a total of Z$I ,320
million per year. The scheme is entirely funded by government.
War Victims Compensations Pension Scheme (non-contributory)
Persons who sustained injuries as a result of the liberation war fought
between 1962 and 1.980 receive pensions
and other
benefits. Dependants of those who died as a result of the war also
receive pension, allowances and other benefits in accordance with the
War Victims Compensation Act (Chapter II: 16). The pension scheme
benefits both ex-combatants and civilians. The benefits are calculated
using the degree of disablement in relation to income earnings received
prior
to sustaining the disability. As at the end of 1998, 16,983
pensioners benefited at a total cost of$170,679,1 19.
Old Age Pensions (non-contributory)
The Old Age Pension Act of 1979 provided payment of pensions to
whites, Coloureds and those of Asiatic origin. Only those in the low
income bracket who were not in receipt of any other income were
eligible. To qualify for this pension one had to be aged 60 years and
above. The Act was repealed at Independence but those who were
already receiving it continued to do so. At the end of 1998 there were
335 pensioners for which a total of$I,577,892 was distributed. The

I.

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number of beneficiaries is decreasing, due mainly to the death of re-
cipients as a result of old age.
Presidential Pensions and Retirement Benefits
(non-contributory)
Those who serve as Presidents or Vice Presidents are covered by this
scheme, which operates in accordance with the Presidential Pensions
and Retirement Benefits Act. The entitlement involves an annual salary
payable to the beneficiary on the day he vacates office. In the case of
a beneficiary who has died the surviving spouse gets an annual pension
which is equal to one half of the annual pension of the deceased.
State Service Pensions Scheme (contributory)
Pensions, gratuities and other benefits are paid to those who are
employed by the State but retire, die or terminate their service on
medical grounds. Their dependents also get benefits except where the
member employed by the State resigns before pensionable age or has
been discharged. The State Services (Pensions) Act: Chapter 16:06
compels those who are employed by the State to contribute 7.5% of
pensionable emoluments towards the Public Service Pension Scheme.
The employer contributes 15%. The employer contribution, when paid,
is deposited into the government Consolidated Revenue Fund. The
money paid is not invested as it is used to pay pension benefits to those
who retire from service.
Parliamentary Pensions Scheme
Senior ministers, ministers, deputy ministers and members of parliament
are provided with pensions under the Parliamentary Pensions Act
(Chapter 2:02). Those who qualifY for this scheme pay contributions
equal to 5% of their pensionable salaries. Their benefits, however are
approximately 66% of their salaries on termination of service. To
qualifY for this pension, members of parliament must have been in
parliament for at least two sittings and also be at least 50 years old.
Judges'salaries,
allowances and pensions scheme (contributory)
Pensions and other provisions are paid to judges and their spouses in.
accordance with the Judges' Salaries, Allowances and Pensions Act
(Chapter 7). This s;;heme was started in June 1993 and from July 1993
judges were required to pay 7.5% oftheir salaries towards the scheme,

(contributory)

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Dhemba, Gumbo & NyamusaralZIMBABWE REPORT

like other civil servants. Their benefits are, however, far superior to
those of other civil servants, mainly due to the formula used to calculate
the benefits, which considers a final.pension as equivalent to a salary.
Judges are also entitled to purchasing, at book value, vehicles issued
to them during their service. As at end of 1998 only 20 retired judges
were receiving pensions under this scheme.

Viability of State Service Pension Schemes
The government, as the employer, does not invest the funds that it
collects from its employees. The money paid by current employees
is used to pay pensions to those who retire from service by inter-
generational transfer. This means that, due to the current downsizing of
the.civil service, there may be fewer contributors to sustain retirees.
Sustaining the programme is therefore uncertain.

Secondly, the employer contribution is not statutorily enforced, so
the shortfall. This shortfall wiJl
current employees have to meet
increase over time as the number of pensioners
increase while the
number of employees decrease. If the employer (government) paid its
stipulated contribution in the ratio 2: 1 in favour of the employee, the
surplus realized could be invested to meet the cost for paying pensions
and proposed reviews.

Thirdly, HIV/AIDS will reduce the civil service workforce due to
the death of some ofthe members who are in the 19 fo 49 age groups.
This will reduce contributions to the pensions scheme each year. Lastly,
civil servants who leave the service before retirement
to join other
private companies and organizations are unable to have their vested
benefits transferred to other pension schemes such as National Social
Security Authority (NSSA). This principle inhibits the mobility of
workers between government and other employers.
Potential for strengthening
The Department of Pensions (1998) has proposed a number of re-
commendations
in order to strengthen the Public Service Pensions
Schemes in the country. These include stipulations that:
• Those who have attained 55 years of age or have served for a maxi-
mum of20 pensionable years will be allowed to retire on a pension

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equal to 65% of final pensionable emoluments. Likewise, contri~
butors who have attained 60 years of age and have served for a
maximum of 15 pensionable years may retire on a pension equal to
65% of their final salary. In the current situation those who have
attained 60 years of age <;Indhave served for 30 years retire on a
pensions of54.4% .

• General allowances such as transport and housing allowances be

included in the pensionable salary of contributions .
• Retired pensioners be entitled to funeral assistance;
• Pensions reviews be inflation-indexed .
• The employer's contribution to the pensions plan will be enforced
as a constitutional and statutory matter and be released in the ratio
2: 1 in favour ofthe employee .

• Surplus contributions from both the employer and the employee be

invested to enhance the income of the pensions scheme .

• The employee's pensions contribution will be taxed but the result-

ing pensions be tax-free .

• Contributions and benefits will be determined at a realistic rate from

time to time, but not less than once in 5 years.

Public assistance: (non-contributory)
This is a non-contributory scheme funded from public revenue. Those
eligible for assistance are the disabled,
the dt;:stitute and the elderly.
This scheme is inadequately funded and not many destitutes therefore
receive assistance.

The National Pensions and Other Benefits Scheme (NPS) and
Workers Compensation Scheme (contributory)
The Pensions and Other Benefits Scheme is funded through the
contributions of both employers and employees while the Workers
Compensation Insurance Fund is funded by the employers. Both
schemes are administered by the National Social Security Authority
(NSSA). Employer and employee contribute 3% each towards the pen-
sion contributions.

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The beneficiaries of these social security schemes are all formally-
employed workers, excluding employees in the civil service, the army,
domestic workers and those in the informal sector. The contingencies
covered by the National Pensions Scheme are old age, retirement,
invalidity and the death of a member. Workers' compensation caters
for employment
injury or illness and medical costs. Both these
schemes provide periodical pension payment and lump sum pension
payments. Medical expenses,
including orthopaedic appliances, are
paid in the case of the Workers Compensation Insurance Fund.

in terms of numbers of members

Viability of national social security authority schemes
The viability of this schemes is compromised by the following weak-
nesses:
compared
Limited coverage
with the total population. There is a plan in place to extend the social
security scheme to people employed in the informal sector by the
year 2005. It was also planned to include the domestic workers into
the scheme by December 2001. At April 2001 the scheme covered
30,000 employers. The
1.4 million workers and approximately
cumulative total of beneficiaries of retirement pensions,
invalidity
pensions and survivors pension was 59,880 (Mbanje 2001).
covered. A mater-
Limited protection
nity benefit scheme was hoped to be in place by December 2001. A
National Health Insurance Scheme and protection against other
contingencies experienced by workers, including unemployment and
retrenchment, are also envisaged.
Low benefit
levels. The increasingly high cost of living meal)s the
benefits paid are inadequate and cannot maintain beneficiaries at an
acceptable standard ofliving. The increase of benefit levels is subject
to actuarial valuation, which has not been done over the years. This
has now been done and the legislative process now needs to be"
completed. It is hoped that after the year 2002, yearly increments will
be made. Insurable earnings will also be increased in line with salary
scales and inflation so that benefits match the cost of living.

in terms of contingencies

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Public image. The compulsory nature of the scheme jeopardized the
image of the organization from the start. The organization is now striv-
ing to improve its image through good governance and disseminating
information to all stakeholders.
Customer
care. Staff at NSSA are being trained in customer care
techniques and the establishment of a one-stop shop and counselling
in social security is being contemplated.
"
in processing benefits. The volume of work involving
Improvement
the payment of benefits at NSSA requires an efficient computer syst€m.
All avenues are being explored to put in place an appropriate computer
system for the timely payment of benefits, as the manual processing
of service provision to beneficiaries delays benefits.
Potential for strengthening NSSA schemes
NSSA is considering expanding the coverage of individuals and the
range of contingencies protected against. The feasibility of extending
coverage to include domestic workers and those in the informal sector
as well as covering contingencies such as unemployment and maternity
benefits is being examined. Setting pension contribution rate at a low
level will not bring undue hardship to either the contributing employer
or employee.

ZIMNAT and ZFU Pension Scheme
This scheme is underwritten by ZIMNAT, a private insurance company
and it is available to all farmers who are fully paid up members of the
Zimbabwe Farmers Union and are under the age of 65 years. A
minimum contribution ofZ$150.00 per annum secures all the benefits
provided by the scheme. The scheme provides guaranteed financial
security and protection to members during their working life and after
It also provides members with the opportunity to save
retirement.
money. The current legislation provides that the pension can be paid
on the attainment ofthe age of 55 years and also on the grounds of ill
health.
The benefits payable are as follows:
Withdrawal
retirement age there is choice from three options;

benefit. On ceasing to be a member, before reaching

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Dhemba, Gumbo & Ny.muSlll'a/ ZIMBABWE REPORT

A cash refund of all contributions J'lus 5% per year compound interest;
The cash refund can be transferred to another
registered pensions
scheme;-
The withdrawn benefit can be i1lllested in the ZIMNAT Pensions Plan
or the Preservation Fund, At any age between 55 and 70 years the
member can easily convert the maturity values to a lifetime pension.
Disability benefit. This is a lump sum payment which depends on the
annual premium paid by the member.
Death benefit. This operates in the same manner as the disability
benefit.
Retirement benefit. This is a payment oflump sum, tax-free commut-
ation up to a maximum of one third of the gross pension, plus a residual
pension based on the member's accumulated pension contributions as
at the date of retirement.
Viability of the ZIMNATIZFU Scheme
The scheme is not considered to be very viable in view of the following
limitations:
• Participation in the scheme is very low due to a low take-up rate.
• There is a lack of effective coordination among the ZIMNAT, ZFU
and its members. Members pay their contributions to ZFU offices
for onward transmission to ZIMNAT. There are administrative prob-
lems as these payments to ZIMNAT are not regular. Communication
between ZIMNAT and ZFU is also neither efficient nor effective .

• The collection of premiums from members is erratic as many mem-

bers do not pay their $150.00 annual contribution.

Potenlial for strengthening
There is a great need to educate the membership on making timely
payments of contributions if the scheme is to be strengthened. The co-
ordination efforts between those who administer the scheme, that is,
ZIMNAT and ZFU, need to be strengthened.

Non-formal social security systems
There are various types of non-formal social security arrangements
operating at community level. These constitute the different socio-
economic measures that individuals, groups or communities in a given

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family,

to satisf):

contingency

area put together, either to meet a specific

geographical
or
to ensure the general well-being of community members. Some arrange-
contingency
ments (such as burial societies)
and credit clubs,
such as death or famine, while others, such as savings
that most
cover a wide range of contingencies.
concerned
famine,
chronic poverty,

The contingencies
visited were death,

at a specific

are targeted

people

in all

the provinces
infirmity and disability.
institutions

ensure

such as burial

societies,

A variety of non-formal

their basic needs by engaging

the general well-being
and building
the extended family, kinship groups and
in addition
and credit

role to play,
savings

activity which will ensure that
however,

in some
they get an income.
their
incomes were
to meet even their ordinary day to day needs and they were
interviewed
in petty trading
ill they become

of their members. Each level, starting with the individual
up through the nuclear
the community (at village level) has a specific
to ll1utual aid societies
societies.
The individual
Adults are expected
form of productive
Most
respondents,
insufficient
therefore unable to save for the future. Many respondents
in all areas were informal
or communal
destitute unless
lhe nuclear family
'the nuclear
security in all areas. Family members
in times of need.
family members
provide emotional
The extended family
Most people still maintain ties with their extended
times of need. Due to the economic
currently experiencing,
however, assistance,
ance, from the extended family is becoming
virtually everyone

involved
when they fall
them out.

If there is illness or a death it is the responsibility
to help and outsiders
and moral support.

provider
of social
to assist each other
of
in any gaps or to

in
are
financial assist-
as

family, especially
that many people

family is viewed as the most

important
are expected

is struggling to meet

their basic needs.

farmers. Consequently

family members

bail

especially
erratic

come in to fill

hardships

pointed

out

that

sector operators

and unreliable,

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Dhernb8,Gumbo & NyamusaraJZIMBABWE REPORT

Viability
The viability of social security arrangements at the individual, family
and community levels is being compromised by the generally high
levels of poverty which are exacerbated by structural
adjustment
programmes and the HIV/AIDS epidemic. The 1995 Poverty Assess-
ment study showed that about 62% of the people in Zimbabwe were
poor and, given the two factors identified above, the situation is now
likely to be much worse. Poverty is characterized by high unemploy-
ment levels and a high cost of living, coupled with low incomes in both
town and country.
Potential for strengthening
Social security can be enhanced through broad poverty alleviation
programmes such as land redistribution and employment creation, to
give people an income that will enable them to experience an acceptable
standard of living.

The community
The participation of the community in the provision of social security
in the rural areas where a variety of arrangements are in
is strongest
place to cover contingencies which need a community approach.
In
some instances, the community is approached because individuals are
incapable of meeting their own needs but in certain situations, sucl1'as
sickness, disability and death, community help is required regardless
of individual
In such cases the village head
mobilizes support and ensures that those in need are helped.

and family capacity.

One specific social security arrangement which is organized at the
community level is the "Chief's Granary" (Zunde raMambo). This is
considered in detail in Phase II of the study below.

Churches
Most people ,in Zimbabwe belong to church groups which all have a
variety of social securitY arrangements, some at church level and others
specifically by women's and men's groups within the church. Members
have to be deemed in need and to be unable to help themselves. Many

VOL 17 NO 2 JULY 2002 JOURNAL OF SOCIAL DEVELOPMENT IN AFRICA

127

the chronically ill, the elderly,

the ill and

of these are the disabled,
orphans and widows and widowers.

Funding comes from church moneys and church members are also
sometimes asked to contribute in cash or kind. Members experience
the following benefits: they are visited when in need and given material
benefits such as money, food, firewood and clothes. They are given
moral support during illness and bereavement and food for funerals.
The church also provides a shroud when a member dies.
Viability
Social security by church groups was seen as a very viable option by
all community members. This explains why almost everyone belongs
to some such group. Church groups not only contribute economically
but also spiritually to individual's total well-being.
Potential for strengthening
The potential for strengthening these groups lies in improving the
economic status of the people as a whole through income-generating
projects.

Burial societies
The study found that burial societies, which were established in order
to cater for deaths and death-related needs, exist in virtually all areas
in Zimbabwe. They are considered in detail
in Phase II of the study
below.

Savings clubs
Savings clubs enable individuals to save money on a regular basis.
Two types of savings clubs were identified during the study. The first
is where club members are assisted by organizations such as the Self
Help Development Foundation, operating in all provinces in Zimbabwe
and the Zimbabwe Project Trust, operating in Matebeleland North and
South only. The second is where members come together informally and
make contributions which they share out after a period stipulated in
their constitution, which is either written or agreed upon verbally.
Informal savings clubs exist in all the areas under study and almost all
had women members. Unfortunately, the number of these groups is not

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Dhemba. Gumbo & Nyamusaral ZIMBABWE REPORT

known because they are not registered. The contingencies
savings clubs are many and non-specific
term such as goods,
assets:

fees, death,

and both immediate

clothes,

school

illness

covered by
and long-
and buying

informal

of the Self Help Foundation

thrust of these organizations.

These group~ contain more women members

than men, because of
For example, more than
the pro-women
are women. There are
90% of members
than men in all
the
also more
communities
fee. Each member
decides how much they want to save per week and the money is banked
by the chairperson
from the
operations
receive funds from
any organization.

of these societies. None of the societies

in one account. Only members

for women
pay a joining

visited. Members

savings

benefit

groups

interest

to share out the money,

Members decide when they want

if a member has a pressing need before that

including
studied share their money at the end of every
time, she
is not
by many groups because it is seen as defeating the purpose

the interest. Most groups
year. However,
can borrow money at an agreed
encouraged
of savings.
Viability
The study established that savings clubs were quite viable. Respondents
that many groups were being formed because people had
pointed out
realized
the
following

to a group. They identified

of being a member:

rate. This practice

as the advantages

the importance

of belonging

You can save small sums of money;

• The group acts as a control measure

and instils discipline

in its

members;

• The interest

realized

is larger

than it would be for an individual

saving on her own. Most members
improve

lives through the savings clubs.

their

state that

they have been able to

Potential for strengthening
These groups can be strengthened,
assisted by any organization.
of both government
that groups

could be strengthened

and non-governmental

Interviews with beneficiaries

especially

those that are not being
and heads
pointed out
they could

organizations

in skills training so that

VOL 17 NO 2 JULY 2002 JOURNAL OF SOCIAL DEVELOPMENT IN AFRICA

129

generate more income and basic education,
among the beneficiaries, which are generally

to improve

literacy levels

low.

Credit schemes
Non-formal credit schemes are common in all the areas covered during
the study. There are two basic types of such schemes. One is supported
by non-governmental
such as Dondolo Mudonzvo, which
organizations
abut 600 groups, each
has credit schemes in all provinces
and supports
with approximately ten members. The Self-Help Development
Founda-
scheme started
tion started its credit scheme in 1996 while the savings
in 1964. They operate
out of ten. Zimbabwe
in Matebeleland North and South only.
Projects Trust has credit groups
There are also informal groups which are not registered
but which are
thriving at community level.

in only four provinces

Credit

immediate

and unexpected

any contingency

like savings, are meant

facilities are made available

to cover
to be multi-purpose.

and
thus,
The majority of the
respondents pointed out that usually people draw on these schemes to
and death. At
meet
times they borrow to meet day to day needs. Membership
is open to
anyone who wishes to apply. The person wishing to borrow must have
assets that can be attached if she is unable to pay back the loan. A close
member of the family can stand surety. Most group members
are wo-
men in both types of credit scheme.

such as illness

needs

Any individual who meets

from the
schemes. Those who have a record of defaulting
are not allowed to join.
There are a number of organizations which fund these groups although
the exact number could not be established.

can benefit

the above

criteria

According

to the organizations

covered
given to the individuals are small. For example.
gives a maximum of $25,000.00
annum. Dondolo Mudonzvo
looking into the possibility
Viability
Credit schemes are viable as they reach the majority
officials of the organizations who offer micro-finance

with an interest

of increasing

the loan.

gives

a maximum of $20.000.

in the study,
the funds
the Self Help Foundation
rate of 40% per
is

but

of the poor. The
the

note that

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Dh&mba.Gumbo& NyamuSlira/ZIMBABWE REPORT

default rates stood at between 25-30%, which they consider low. This
is because they employ loan officers who follow up on defaulters.
Potential for strengthening
Credit schemes have the potential
to be strengthened as people are
already mobilized into groups. They can be trained so as to strengthen
their capacity to produce and manage their projects so that they are
.able to repay their loans.

Conclusion
This study identified the main formal schemes as social insurance and
social assistance. The schemes administered by the State are the State
Service Pensions, War Veterans Pensions, War Victims Compensation,
Old Age Pensions, Presidential Pensions and Retirement benefits,
Parliamentary Pension, Judges Salaries, Allowances and Pensions and
Public Assistance.

The National Social Security Authority administers the National
Pensions and Other Benefits Schemes and the Workers Compensation
Schemes and protects those in the private sector. Other private sectOl
initiatives in social protection include the ZIMNAT and the Zimbabwe
Farmers Union pension scheme for smallholder farmers. A number of
0ther private occupational pensions schemes are provided by insur-
ance companies: this study did not, however, cover such schemes.
What is clear is that most Zimbabweans obtain whatever social protect-
ion they have through non-formal social security systems and only a
minority are catered for by formal schemes.

On the basis of the findings of this study the researchers selected
burial societies and the Chiefs granary for in-depth study in the second
phase because they have a great deal of potential
for strengthening
and provide inclusive social security coverage.

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