Almot Maqolo, Staff Writer 
ZIMRE Holdings (Zimre) says it recently invested over US$2 million in Mozambique and is now focusing on Zambia, where it aims to meet local ownership requirements.
Previously, the group stated that it would invest US$5 million in Malawi and Zambia as part of a wider strategy to expand market share and strengthen the firm’s competitiveness.
This comes after Zimre commissioned an independent actuary, Alexander Forbes of South Africa, to do an evaluation of all of its regional investments.
ZHL group chief executive officer, Stanley Kudenga
The ZSE-listed group, with business operations in the pensions, property, wealth management, short-term insurance and insurance broking sectors, wants to grow its flagship business, the reinsurance and reassurance operations, across the African continent as a hedging strategy against risks.
“In Zambia, how we are going to handle it is that (since) they also now have a local law requirement which encourages local participation to the minimum of 25 percent, we are actually in the process of concluding to bring on board new investors to the extent of 25 percent,” the group’s chief executive, Stanley Kudenga, told The Financial Gazette recently.
“So, this will address the gap in terms of that capitalisation to the US$5 million tune that we are talking about. I think we should be done by the end of September.”
Kudenga also said they have developed a private placement document and identified a group of interested investors to tag along.
“So, we are in the midst of negotiating to place 25 percent of Zambia into the local market and by way of a rights issue, where we waive our rights and allow the new investors to take them up,” Kudenga added.
The group has been making headway in regional markets such as Botswana, Malawi, Mozambique and Zambia through its regional reinsurance cluster, Emeritus International Reinsurance targeting big accounts.
Zimre’s strategy involves increasing the contribution from its regional investments by upscaling its balance sheet and effectively deploying competitive capital across all strategic business units.
The group’s regional expansion began in 1996 with the acquisition of United General Insurance in Malawi and the formation of Zimre Malawi.
Zimre Zambia was established in 1999, while Zimre Mozambique was established in 2003, in addition to the equity investments in Eswatini, Kenya, and Uganda. newsdesk@fingaz.co.zw
