CBZ expands regional footprint

LIVINGSTONE MARUFU

CBZ Holdings Limited (CBZHL) has officially begun operations in the region, focusing initially on South Africa, as part of a strategic drive to expand its footprint across Africa and shield its balance sheet from local currency volatility.

The lender had initially planned to leverage a merger with ZB Financial Holdings and First Mutual Holdings Limited to ease regional entry. However, following the collapse of that deal, CBZHL opted to pursue expansion independently.

The latest development was revealed by  CBZ chief executive officer Lawrence Nyazema t who told Business Times: “As we speak, we’ve got a representative office in South Africa. We need to derive more business out of that representative office. We are launching ourselves into the region in a focused way this time around. We are starting with our insurance. Using the measured approach, we are going into South Africa with a greenfield investment. We are also looking at life in South Africa, and I’ve been saying for the longest time that we cannot ignore South Africa. Given that 70% of insurance revenues on the entire continent, from Cape to Cairo, are in the South African market. It talks of depth, it talks of scale, it talks of capacity. But we are going in a measured way.”

He added: “We have made forays into Mauritius. That experience has grown to our satisfaction.”

CBZ is also targeting Botswana for reinsurance broking.

Nyazema explained:“So in Botswana, we are looking at income, we are looking at reinsurance broking, not the reinsurance business itself. So the reinsurance provides services to the reinsurance broking firm, who provides services to the insurance company. So it’s part of that value chain. In Botswana, just looking at the Botswana market as a launch pad for us to underwrite risk, and assist in underwriting risk where we will do business with various Zimbabwean companies there.”

In Eswatini, the group plans to pursue partnerships.

Analysts welcomed CBZHL’s regional expansion strategy, noting that South Africa presents significant market opportunities. “CBZ is making a calculated move into markets that matter. Starting with insurance in South Africa is smart given the market’s depth and size. Their digital transformation gains in Zimbabwe give them a competitive edge,” said one independent financial analyst.

Investors also reacted positively to the half-year results, with several highlighting the strong capital base and growth in customer deposits as key confidence boosters.