ZB bets on Moza business

Livingstone Marufu
ZB Reinsurance, a wholly-owned subsidiary of ZB Financial Holdings, plans to establish a fully-fledged office in Mozambique. The Zimbabwean financial services group started rolling out services in the neighbouring country in January after getting regulatory approval from the Insurance Institute of Mozambique.

Dissident activity by Renamo, which is opposed to the ruling Frelimo party, threatens to dent the 7,9 percent growth forecast by the IMF for 2016.

Maputo was the fifth-largest recipient of FDI in Africa in 2014 at US$3,5 billion and investments are likely to be higher this year.

It is this growth that ZB is angling for.

ZBFH group corporate services head Mr Shadowsight Chiganze said last week the group would establish an office in Mozambique once transaction volumes improved.

“While the approvals were sought and granted for the opening of that office we have not proceeded to complete the opening of the office at this moment. We shall continue to underwrite business from the Zimbabwe office until the volume of business transacted justifies the establishment of an office in Mozambique.

“We are, meanwhile, happy with the business we are currently transacting using our Zimbabwe office,” said Mr Chiganze.

ZB’s foray into Mozambique is designed to grow revenues and spread risk.

Added Mr Chiganze: “We are not directly affected by developments in Mozambique because we do not run operations there. Since we have not set up operations in Mozambique we do not have people stationed in that country.

“Strategically we will roll out structures in line with our business plans. So far, the bulk of the business we have from that market is adequately handled by our office in Harare.

“We are not making any rush decisions on this project. Our idea is not just to put up structures there but to ensure that we appropriately position our reinsurance operation in order to take up opportunities more efficiently.”

Last year, ZB reported a 191 percent leap in net profit to US$8,9 million from a loss of US$9,8 million in 2014.

In March 2016, the group’s CEO Mr Ron Mutandagayi told analysts that the company would continue to look for opportunities to grow its asset base and profits.