Online Reporter
Nelson Gahadza, Zimpapers Business Hub
Old Mutual Zimbabwe has stated it will continue to look at sectors that support sustainability, such as renewable energy, as part of its responsible investment strategy.
Additionally, the group will drive deposit mobilisation and access credit lines to support loan book growth, targeting key economic sectors.
During a half-year analyst briefing on Tuesday for the period ending June 30, 2025, Group Chief Executive Mr Samuel Matsekete said the group would continue deployments in the US$100 million Renewable Energy Fund and explore new public-private partnerships in areas of mutual interest.
“We believe that sustainability must be a way of doing business, and we would wish that in all our interactions with customers and stakeholders, we would see things similarly and look at sustainability through a number of lenses,” he said.
Mr Matsekete said that in addition to other interventions, the group has invested in green energy for its own consumption at its premises. He noted that the group would also continue to adapt its product suite and enhance its value proposition for underserved segments, including women, the youth and small to medium enterprises (SMEs).
He added that the company would also launch new thematic funds to address evolving customer needs.
“Driving greater visibility and customer access in the funeral services sector through strategic partnerships and an expanded agent network will be prioritised. Growing new business and retention in general insurance through strengthened distribution partnerships and elevated service delivery across customer touch points and service centres will also be key focus areas during the second half of the year,” he said.
He said the group increased lending to the growing SME sector, supporting 837 SMEs, and that 20 percent of the total loan book was allocated to food security initiatives within the agriculture sector.
“These are some of the areas we continue to focus on to ensure that we are also playing a part in our humble ways to support the sustainability outcomes that we would like to see in the wider economy,” he said.
Another area, according to Mr Matsekete, is financial wellness. The group’s financial education reached 18 000 individuals through face-to-face engagements and over 1,3 million via digital channels.
“We believe that as a financial services operator, one of our responsibilities is to ensure the right practices in how customers make choices and decisions to buy our products or just to make financial decisions. Therefore, financial education is an anchor programme in this space,” he said.
During the period under review, the group’s Life Insurance Business revenue grew by 80 percent, driven by growth in new pension contributions. The unit paid claims totalling ZiG609 million and US$7,5 million, demonstrating the group’s continued commitment to meeting policyholder obligations across currencies.
The group’s banking unit, CABS, achieved a 44 percent growth in deposits, driven by growth in customer wallet share and strong performance in key economic sectors. Mr Matsekete said growth in the loan book of 31 percent drove growth in net interest income by 57 percent.
“The quality of the loan book continued to be very strong, and we closed the half-year period with a non-performing loan ratio of 0.9 percent, better than the prior year’s 1.5 percent, remaining within target,” he said.
Mr Matsekete added that the group continues to focus on service enhancements and has remodelled its branches and expanded its ATM network to support the demand for cash in the market. “We will also maintain a very strong book of international credit line facilities, and over the period under review, we established just under US$38,5 million of new facilities for our own lending to key productive sectors,” he said.
The bank’s loans and advances grew 31 percent to US$255,3 million, compared to US$195,1 million in 2024, mainly from an increase in the foreign currency lending book to key sectors.
Mr Matsekete said the bank also continued its efforts to upgrade its digital platforms outside the core banking system. “We also continue to upgrade the front end so that internet banking for both corporate and retail was upgraded this year, and we migrated our customer base to the new platforms. The rating by Global Credit Rating
Agency awarded us an improved rating from A+ to AA after recognising all of the improvements and stronger performance on financials as well as our payment and asset liability management track record,” he said.
Mr Matsekete said Fintech drove stronger customer engagement and 118 percent growth in wallet transactions compared to the prior year, driven by an expanded product suite with the launch of nano loans. “We continued offering the O’mari USD Mahalabundle for affordable and convenient customer access and widened our physical network through strategic partnerships and the launch of the first O’mari Remittance Centre at Eastgate Market,” he said.
