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FIDELITY Life Assurance of Zimbabwe is set to inject a combined US$600 000 together with its South Sudanese short-term insurance partner into their joint venture after getting the nod to proceed with the deal from the Reserve bank of Zimbabwe and the Insurance and Pensions Commission.
The deal between Fidelity and the National Insurance Company of South Sudan was signed in July this year after the latter had expressed their desire to partner Fidelity as they seek to tap into long term insurance.
Speaking to Herald Business yesterday, Fidelity Life managing director Mr Simon Chapereka said the capital injection from both parties will be made soon while officials from Fidelity have already been deployed to South Sudan.
“I can confirm that the deal we signed with the National Insurance of South Sudan is now ready to take shape after we got clearance from both the Reserve Bank and IPEC.
“Our team is already in that country and both parties will avail a combined US$600 000 towards the venture while the money will be used as working capital for the running costs of the company,” he said.
Earlier this year Mr Chapereka mentioned that Fidelity’s initial investment into the company would be targeted at IT infrastructure, motor vehicles and the human resource aspect of the operations while he also said the partnership will be on a 50-50 basis.
“Our partnership will be on a 50-50 basis with our investment focusing on IT infrastructure, motor vehicles and human resources and if everything goes according to plan we are likely going to start realising benefits from the deal,” he was quoted as saying.
Fidelity has in the past partnered with other companies within the African continent having worked with the Kenya National Assurance Company in 2000 after deploying its human resource expertise to bail the company from collapse.
The insurance firm also operates a Malawi-based subsidiary, Vanguard Life Assurance which it acquired in 2005 as it sought to spearhead its life and individual pensions for the group.
Vanguard had previously been wholly-owned by Zimre Holdings Limited. Locally, Fidelity has widened its sphere of influence into property development, asset management and micro-finance while it also embarked on rationalising its business structures to increase profitability. This has seen some operations of its life assurance businesses merging.
The firm is currently developing its US$20 million South View Park high-density project located along the Harare — Masvingo highway which is expected to house eight school, shopping centres and 6 000 housing stands.
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