Financial sector ‘ripe’ for more mergers

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ZIMBABWE’S financial sector is primed for mergers and acquisitions in 2021 amid indications that a majority of institutions are struggling to raise capital, a research firm has said.
High inflation in recent years has seen a number of institutions’ capital bases shrinking in real terms, raising solvency and liquidity risk.
“Our research reveals that there is scope for mergers and acquisition activity in the sector in 2021 and this could present interesting opportunities for investors,” Morgan & Co said last week in a research note.

As part of a “capital optimisation” strategy, the National Social Security (Nssa) last year sold its majority shareholding in ZB Financial Holdings (ZB) and increased its stake in CBZ Holdings (CBZ).