Online Reporter
Nelson Gahadza, Senior Business Writer
Old Mutual Africa Regions (OMAR) says it is well-positioned to drive growth and financial inclusion across Zimbabwe and the rest of the African continent, committing to compliance and good governance.
With a presence in 10 countries, including Zimbabwe, OMAR said it was also well-positioned to tap into the region’s growing demand for financial services.
In an interview, Mr Clement Chinaka, managing director of Old Mutual Africa Regions (OMAR), said as the company continues to evolve and adapt to changing market conditions, it remains committed to supporting local economies and communities and promoting financial inclusion across the continent.
“In Zimbabwe, we directly operate through our subsidiary Old Mutual Zimbabwe, and we support the business to remain a significant player in the country.
“We believe, as Old Mutual, that what is good for the communities that we operate in is also good for Old Mutual, and that is the principle that guides our subsidiaries and how they engage with the market in which they are operating,” he said.
Mr Chinaka said in Zimbabwe, while the regulatory environment changed often, the group’s attitude is to always comply with the regulations.
“The Old Mutual Group is well-positioned for the opportunities that lie ahead at group level, as well as in Zimbabwe.
“We believe that we have looked after our customers for all these years, and we are going to continue to do that for much longer. We will continue to evolve as the market that we operate in evolves to remain relevant to our customers,” he said.
For the year ended December 31, 2024, OMAR achieved a 56 percent growth in customers and a 17 percent increase in net client cash flows.
Despite operating in different jurisdictions, Old Mutual Africa Regions demonstrated resilience and adaptability, driven by its strategic focus on expansion, innovation and digital transformation.
Mr Chinaka said that in order to sustain growth, OMAR will increase its focus on new markets in East Africa while expanding in existing markets.
“The gross domestic product (GDP) for Africa is growing and is one of the fastest in the world, particularly in East Africa, which will be the fastest-growing region on the continent in the near future.
“There is an opportunity to expand consumption of our services because the penetration is very low by all standards, especially outside South Africa and Namibia.
“In all other markets that we operate, the consumption of our services is too low, and therefore there is an opportunity to increase that to deliver growth for the Old Mutual Africa Regions portfolio,” he said.
He added that as a part of the Old Mutual group, there were also opportunities to grow within East and West Africa, where the portfolio’s businesses are not the top businesses to the extent of businesses in Southern Africa.
“Thus, there is an opportunity there for us to grow market share in a number of markets in East and West Africa, and that will also help us sustain the growth that we saw in the year to December 2024.
He noted that during the year under review, East Africa grew by 100 percent, and the market is now ready to contribute to group earnings. Mr Chinaka said Africa’s growing middle class and increasing urbanisation are driving demand for financial services, including retirement planning and health insurance.
According to recent estimates, the African middle class is expected to grow to over 1 billion people by 2050, presenting a significant opportunity for financial services providers like OMAR.
Mr Chinaka said OMAR sees significant opportunities for growth, particularly in life insurance, property and casualty insurance as well as asset management.
“The company’s strategy for growth includes investing in distribution capability, product development, and service enhancement,” he said.
OMAR, Mr Chinaka said, has the biggest financial services business in each market that it operates, particularly in Malawi, Namibia and Zimbabwe.
“The biggest strategy that we follow is to grow profitably, so we are going to invest quite a bit in growing our distribution capability.
“We have to sell insurance, as people don’t just wake up to buy, so investing in distribution is going to be an extreme capability that we need to compete and retain our competitive advantage,” he said.
Mr Chinaka emphasised OMAR’s commitment to compliance and governance, with a strong framework in place to ensure adherence to local regulations.
He said the company’s governance structure includes local aggregator boards such as Old Mutual Zimbabwe Limited, which oversee the operations of various subsidiaries.
“This commitment to compliance and governance is critical in ensuring that OMAR operates with integrity and transparency and is well-positioned to navigate the complex regulatory environments in which it operates,” said Mr Chinaka.
He also noted that there is a growth of the African diaspora, which helps with its own opportunities in terms of services that they want to provide for people that they left at home.
In the year under review, OMAR saw a 17 percent increase in net client cash flows, reflecting the company’s ability to attract and retain clients.
It also achieved a 61 percent growth in the normalised portfolio forecast, driven by strong performance in the general insurance and asset management businesses and a nine percent growth in net interest income, reflecting the company’s robust banking and lending operations.
