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Business Reporter
NICOZ Diamond has invested US$1,2 million as start-up capital in Mozambique and anticipates to realise good fortunes by the end of the year.
Managing director Mrs Grace Muradzikwa said the group had expanded its insurance business to Mozambique where they expect growth.
The company invested start-up capital of about US$1,2 million through different partners among them BancAbc.
“Gross Domestic Product in Mozambique has been constant in the 8 percent region and all the fundamentals are right for the market. The environment looks conducive for us,” said Ms Muradzikwa.
Steady growth witnessed in the economy since dollarisation has enabled the company to explore the export market.
Nicoz has expressed interest in acquiring stake in First Insurance Company of Uganda while it also has other investments within the region.
Meanwhile, the group has started developing some cluster houses in Hatfield, Harare as the short-term insurer expands beyond its core business to boost profits.
The project will cost US$4 million and is expected to be completed by the end of this year. Nicoz Diamond has set the indicative price for its 58 housing units at US$110 000 per unit
Mrs Muradzikwa yesterday said the US$110 000 per unit “indicative” price was based on tenders awarded to the projects contractors.
“About US$2 million profit is expected once the project is complete,” Mrs Muradzikwa said at a ground-breaking ceremony at the site also known as “Diamond Villas.”
She said Nicoz has “engaged some financial institutions involved in mortgage finance” to provide loans to potential home seekers.
Nicoz will also provide cover for the home owners. The investment is part of the company’s efforts to create more value on the assets already on disposal.
Nicoz Diamond purchased 60 000 square metres of barren land about five years ago and now they wish to dispose it as a developed asset.
Mrs Muradzikwa said stability in the economy continues to create an enabling environment for the company to invest more in infrastructure development.
“We have secured enough funds for the project and completion is scheduled for next year. The operating environment continues to be favorable to our operations. This is just the beginning; more projects are still in the pipeline.”
Zimbabwe’s insurance industry nearly collapsed at the height of hyperinflation around 2008 which wiped insurance companies’ capacity to settle claims while corporate and individual policyholders were forced to review their positions following the liquidity challenges to prioritise their immediate concerns at the expense of insurance cover.
Despite liquidity constrains biting many insurance firms adversely affecting their cash flows, Nicoz Diamond has continued to flex its investment muscle in the sector and is one of the leading insurers in terms of assets and market share.
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