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Zimbabwean firm offers pensions denominated in cows

Zimbabwean firm offers pensions denominated in cows

While everyone fights against inflation, Zimbabwean local resident Kelvin Chamunorwa created the Nhaka Life Assurance pension fund. Upon retirement, its clients can receive payments in the form of cows.

Zimbabwe is notorious for its endless economic crisis, record depreciation of its national currency, low savings rates, and a restriction on the circulation of the US dollar. In such a situation, cows are an excellent liquid asset that will be in demand in any economic situation. It is also protected against inflation. Zimbabweans, who have long been disappointed with the local pension system, have welcomed the idea. So far, the fund has 70,000 clients.

Chamunorwa was inspired to establish the pension fund by his mother. She worked at the local bank for 25 years. However, horrendous inflation, which reached an annual rate of 231,000% in mid-2008, wiped out her savings. According to Chamunorwa, the authorities cannot "print" cows like local currency. This provides protection against inflation. At the same time, cow breeding increases the fund's assets. The founder of Nhaka Life Assurance believes that his scheme is suited to countries whose citizens have completely lost confidence in conventional approaches.

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