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Nelson Gahadza-Senior Business Reporter
CBZ Holdings says the recent placement of 13 executives on garden leave is part of a phased restructuring aimed at aligning the group’s strategic thrust with the evolving business environment.
The staff rationalisation comes as CBZ has been actively seeking potential acquisitions and alliances in the local and regional markets that align with the group’s growth strategic goals.
The group is one of Zimbabwe’s largest financial services conglomerates with subsidiaries in banking, insurance, investments, wealth management, mortgages and retail finance.
In recent years, the group has been on the market for acquisitions and mergers, part of the group’s broader efforts to strengthen its market position and ensure long-term sustainability in a dynamic market.
Group chief executive Mr Lawrence Nyazema said in a statement that the first phase of the restructuring process was at the executive level, which resulted in the departure of 13 senior personnel.
“The executives will go on garden leave starting October 1, 2024, with mutual termination of their contracts expected by December 31, 2024,” he disclosed.
Transactions executed by the group recently include the acquisition of First Mutual Holdings (FMHL), which CBZ believes would achieve scale to compete against larger corporations in Zimbabwe and the region.
According to Mr Nyazema, CBZ Holdings remains fully committed to fulfilling its obligations and delivering high-quality service to customers.
“By streamlining our operations, managing costs effectively, and sharpening our strategic focus, we are better positioned to serve our clients and stakeholders more efficiently,” he said.
He added that the group was committed to continually improving its business processes and adapting to the changing needs of the market to ensure continued growth and success.
The affected executives include deputy chief executive investments Jack Smith, group chief risk officer Clemence Chimwanda, chief legal officer Vogt Melanie, chief internal audit officer Jonker Bruce, group chief information officer Bansal Ashish, and Ruredzo Benlaw, business development executive digital.
Others are Dedrey Mutimutema (divisional director retail banking), Chenai Chiketsani (divisional director mortgage finance), Paul Chimudzi (divisional director business banking), Edward Mombo (divisional director bank operations), Richard Mangi (investment banking executive), Simbarashe Mhungu (chief operating officer Agro Yield), and Hasmon Bvumburai (general manager CBZ properties).
Earlier in the year, CBZ Holdings appointed Mr Luxon Zembe as chairman effective April 19, 2024, having held the position in an acting capacity since December 1, 2023.
Mr Zembe took over from Mr Marc Holtzman, who retired as director of the company and from his position as chairman, with effect from December 31, 2023.
Prior to his resignation, asked if there were going to be any retrenchments post the mergers, the former chairman said the transactions presented an opportunity to bring together a huge pool of experience and talent, and that it was the group’s intention to use that talent to create a true market leader.
“We therefore expect that such a transaction will present the respective staff with new and bigger opportunities to grow and develop together with these businesses. Any decisions will be based on merit, as we will have an independent consultant to ensure the right people are in the right jobs,” he said.
He added that the company needed every personnel as it was also failing to get them from the local scene and had in some instances gone to recruit in the diaspora, so there would be casualties but to a very minimal effect.
CBZ Holdings acquired ZB Financial Holdings in 2020. In that transaction, the National Social Security Authority (NSSA) disposed of its 37,79 percent ZB Financial Holdings (ZBFH) shareholding in exchange for CBZ shares worth $640 million (US$7,8 million).
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