HARARE – CBZ Holdings is exploring alternative acquisitions after the Competitions and Tariff Commission (CTC) rejected its plan to increase its shareholding in First Mutual Holdings Limited (FML) through a mandatory offer.
The CTC ruled that CBZ must maintain its 31.22% stake in FML, as initially approved. This decision has prompted the financial services group to consider other strategies for growth and diversification, according to Group CEO Lawrence Nyazema.
Speaking at a media engagement in Harare, Mr Nyazema described the FML acquisition as part of a broader strategy to expand CBZ’s portfolio.
“We wanted to deepen our diversification by acquiring an insurance, property, and investment business and integrating them with our existing operations,” Mr Nyazema said. “Now that the merger is not an option, we are exploring alternative ways to achieve our growth objectives, including looking for other partners. Our goal remains to grow our business, deepen our presence in Zimbabwe, and expand into international markets.”
Awaiting ZB Holdings Decision
CBZ is also awaiting the CTC’s decision on its proposed acquisition of ZB Holdings, with a ruling expected by the end of this week.
Mr Nyazema emphasised the importance of regional and international growth, noting that CBZ had yet to establish a sustainable presence outside Zimbabwe since its inception in 1980.
“We have set up an asset management business in Mauritius and a representative office in South Africa, but now we want to begin underwriting business across the region,” he said. “You will see us diversifying beyond Zimbabwe and away from being solely a bank.”
Strategic Restructuring and Growth Plans
The group’s restructuring exercise is expected to conclude by January 2025, with an ambitious plan to double its balance sheet and bottom line within the next four to five years.
“Our growth will come from Zimbabwe and the region,” Mr Nyazema said. “We are optimistic about next year and are working on solutions to attract and retain deposits from the informal sector, which holds significant potential for the banking industry.”
He also highlighted plans to develop new products in insurance, agriculture, and other sectors to cater to informal businesses.
Regional Expansion and Northgate Housing Project
CBZ aims to establish a presence in additional markets by the end of 2025, with its operations in Mauritius and South Africa serving as key launchpads for regional expansion.
On the domestic front, Mr Nyazema revealed that phase one of the Northgate housing project, which includes approximately 8,000 stands, has been completed. Phases two and three will provide critical infrastructure such as roads and water, with plans to make the community self-sustaining in terms of power supply.
“We want to deliver a fully functional, self-sustaining community,” Mr Nyazema said.
CBZ’s diversification efforts underscore its commitment to maintaining a stronghold in Zimbabwe while venturing into regional and international markets, as the group positions itself for long-term growth.
Source: The Herald
