ZHL unlocks local and regional capital with VFEX-listed REIT and strategic insurance xpansion

SAMANTHA MADE

Zimre Holdings Limited (ZHL) is repositioning itself to tap into local and regional capital markets as Zimbabwe adjusts to a new era of declining Official Development Assistance (ODA). The diversified financial services group is leveraging two strategic initiatives to secure sustainable funding — the listing of its Eagle Real Estate Investment Trust (REIT) on the Victoria Falls Stock Exchange (VFEX) on Friday, and a capital raise for its regional insurance arm, Emeritus International.

Speaking during the VFEX listing ceremony in Victoria Falls, Finance and Economic Development Minister Professor Mthuli Ncube hailed the development as a milestone for Zimbabwe’s capital markets and infrastructure transformation.

“This REIT is more than just a financial instrument — it is a structural transformation vehicle for Zimbabwe,” Ncube said. “It demonstrates that local capital can be mobilised to fund property development, reduce our reliance on foreign aid, and accelerate urbanisation. We need more instruments like this to unlock domestic capital for national development.”

ZHL Secretary Ruvimbo Chidora, in a Q1 2025 trading update, said the group had anticipated a fundamental shift in capital flows and proactively crafted structures to seize emerging opportunities.

“In anticipation of the decline in Official Development Assistance (ODA), ZHL has structured opportunities to capture and grow local and regional capital,” Chidora said. “The first of these is the Eagle Real Estate Investment Trust (REIT), a developmental REIT applying modern technologies to bring urbanisation and structural transformation to Zimbabwe. The REIT was successfully listed on the Victoria Falls Stock Exchange on 16 May 2025.”

She added: “The second is the capital raise for Emeritus International, which seeks to take advantage of regional insurance regulations that are moving away from placing risk outside the continent and instead advocating for the exhaustion of local capacity.”

The Eagle REIT, Zimbabwe’s first developmental real estate investment trust, is designed to unlock value in underutilised land, stimulate infrastructure growth, and create an alternative investment asset class for domestic and diaspora investors. By listing it on the VFEX, ZHL is positioning the REIT to tap into US dollar-denominated capital and attract regional institutional investors.

Speaking in Victoria Falls,ZIMRE board chairman, Desmond Matete said the listing signalled a coming of age for Zimbabwe’s property and capital markets.

“This REIT sets a new benchmark for financial innovation in Zimbabwe,” Matete said. “It’s a tool for building cities, not just portfolios. What ZHL has done here is tap into the energy of domestic capital markets and show that Zimbabwe can develop from within. This listing sends a clear message — we don’t have to rely solely on donors or foreign capital to grow.”

Chidora also emphasised that the REIT, combined with the Emeritus International capital raise, forms a feedback loop that aligns shareholder interests with long-term continental growth goals.

“The transaction will also connect the investment feedback loop, ensuring return on investment to shareholders while also attending to the Emeritus brand’s market competitiveness and the Group’s expansion into new African markets,” she said.

The capital injection into Emeritus International is timed to coincide with regulatory shifts across Africa that encourage the retention of insurance premiums and risk within the continent. With a footprint already in several African markets, Emeritus is poised to deepen its Pan-African operations and establish itself as a competitive force in regional reinsurance and specialty lines.

ZHL’s multi-pronged strategy is anchored in its Strategy Triangle — a framework focused on operational efficiency, market capture, and data-driven decision-making. Chidora reiterated ZHL’s commitment to leveraging this model for sustained growth.

“ZHL will continue to drive its Strategy Triangle, making particular use of data to bring about organisational efficiencies, capture untapped markets, and strengthen the Group ecosystem,” she said.

The group’s financials for the first quarter of 2025 reflect solid performance under this strategy. ZHL posted a 21% growth in insurance contract revenue, rising from USD13.03 million (ZWG348.85 million) in Q1 2024 to USD15.82 million (ZWG423.32 million) in Q1 2025. The increase was attributed to new business acquisition, local and external market expansion, and diversification of insurance products.

The reinsurance cluster remained the group’s largest contributor, accounting for 73% of insurance revenue, followed by life and pensions at 22%, and short-term insurance at 5%, up from 4% a year earlier.

As Zimbabwe navigates reduced donor flows and seeks to deepen its domestic capital base, ZHL’s strategic push into REITs and regionally aligned insurance operations presents a compelling model for mobilising internal and regional financial muscle. In doing so, ZHL is not only future-proofing its own business — it’s also charting a course that may inspire other corporates to think beyond borders and beyond aid.