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Nelson Gahadza
Senior Business Reporter
LEADING financial services group, Old Mutual Zimbabwe says, it will focus on the long-term sustainability of its operations by pursuing efforts that support the thrust and inclusive growth.
The group has been actively involved in supporting various economic activities in Zimbabwe and assisting start-up businesses and small enterprises, including those looking to formalise their operations.
Old Mutual Zimbabwe group chief executive officer Mr Samuel Matsekete, in a presentation of the company’s 2022 financial results, said there was coherence in what the group did in its banking line of business and in the investment space to complement its proposition.
“We will be focusing on the long term and sustainability. We are pursuing efforts to ensure that we support the thrust and inclusive growth.
“Inclusive growth means we will bring players in the formal economy and we will then be able to reach and deploy our products much more effectively,” he said.
Mr Matsekete said the group had been running the initiatives in the microfinance business, which has seen it reach a number of businesses and players in the value chain.
“They may be small, but are critical to the viability and sustainability of bigger businesses. It is our way to tap into the value chain and we flow the money into those spaces,” he said.
Mr Matsekete said the group would also play a key role in inclusive growth, promoting financial literacy, such as the programme, “On the Money”, which has reached a number of people and has deployed this through partnerships but also directly from various spaces the group is represented.
Mr Matsekete noted that the property market remained larfegly mainly dollarised, however, there has been an increasing trend of property developments in various spaces.
“We have seen the densification of Harare’s northern suburbs continuing and there have been similar trends in similar towns and centers.
“There has also been significant investment going into real estate, supporting different value chains. Old Mutual is invested in warehouses, supporting certain value chains in logistics and distribution sectors,” he said.
Mr Matsekete said Old Mutual Zimbabwe was committed to supporting key economic sectors of the economy and has made several investments in sectors such as energy, agriculture and mining.
He said the group remained optimistic in the medium long-term outlook, as it continues to support efforts to stabilise the operating environment and the financial services industry.
He said the key macro factors for the short term are reduction in inflation, resolving electricity shortages, responding to global challenges and efforts to formalise the informal sector.
“There are promising green shoots in the primary agriculture sector, wheat yields, favorable rainfall patterns, horticulture and other agro exports. “The mining sector will benefit from good commodity prices and continued investments in existing mines and infrastructure development,” he said.
Mr Matsekete said all group units are well capitalised with subsidiaries exceeding both internal and regulatory capital targets.
He added that the group continued to mobilise lines of credit to support players in sectors presenting growth opportunities.
A total US$108 million of lines of credit was deployed and partnerships with bilateral institutions were strengthened such as the US$7,5 million specifically designed to support trade, established with AFDB.
According to Mr Matsekete, energy has been one of the spaces that the group has been deploying significant resources into.
According to the National Development Strategy 1 (NDS1), energy is a key enabler to the acceleration of the country’s modernization and industrialization agenda as well as sustainable socioeconomic growth.
On agriculture, Mr Matsekete said 39 percent of the total loan book went into agriculture and within that, the agro-export sector had been significant in the last two or so years.
Within mining, he said the Company is looking at mining value chains and seeing who plays what role in the mining value chain.
He noted that 4,5 percent of the total loan book was disbursed to mining companies and the value chain.
Mr Matsekete also highlighted that significant amounts were deployed to support manufacturing and distribution businesses.
Online Reporter