Mishma Chakanyuka, Staff Writer 
OLD Mutual Zimbabwe has announced that its asset management division invested US$13 million in alternative ventures, including renewable energy projects, during the half-year ending June 30, 2024.
In a statement accompanying the group’s financial results, Old Mutual Zimbabwe chief executive, Samuel Matsekete, emphasised the company’s commitment to driving transformation toward a green economy.
“The transition toward a low-carbon economy is a pivotal challenge in the present and future decades, drawing heightened local and global attention,” said Matsekete.
“We are actively developing expertise in this domain to address customer needs while also striving to comprehend and minimise our operational carbon emissions.”
Old Mutual managing director Sam Matsekete
He highlighted that the group’s investment focus includes renewable energy projects, aligning with Zimbabwe’s goals to achieve its Sustainable Development Goals (SDGs).
“Our asset management business deployed US$13 million in alternative investments, including projects in the renewable energy sector,” Matsekete noted.
This announcement follows the recent launch of the Old Mutual Renewable Energy Fund, a private equity fund dedicated to advancing renewable energy investments in Zimbabwe. The fund is registered with the Securities and Exchange Commission, with initial investors including Old Mutual, the Government of Zimbabwe, and various UN agencies. The fund aims to support local renewable energy initiatives and technologies.
During the period, the group reported a profit after tax of ZiG242 million, a decline from the ZiG2,5 billion recorded in the same period last year. This decrease was largely attributed to inflation accounting impacts until April 5, 2024, when the currency changed to ZiG. However, revenues from general insurance and life insurance surged by 125 percent, reaching ZiG313 million, up from ZiG139 million in the prior period.
Investment returns were impacted, registering a loss of ZiG2,5 billion, down from ZiG14 billion previously. This was driven by fair value changes in equities and investment properties, influenced by inflation accounting and valuation adjustments in investment properties.
Matsekete noted a decrease in interest income, which dropped by 32 percent to ZiG235 million due to tighter lending margins and a shift toward US dollar lending.
Meanwhile, fee and commission income rose to ZiG472 million, driven by growth in transaction volumes and increased USD transactions. Total assets increased by 19 percent, from ZiG18 billion at the end of 2023 to ZiG21 billion, reflecting growth in the loan book and cash balances.
Looking ahead, Matsekete said Old Mutual will focus on advancing technology projects, optimising distribution channels, and expanding its product offerings.
“We will also continue the thrust to bring new and modified products to the market to ensure our customers enjoy more choice and flexibility through our integrated financial solutions,” he added.
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