Economy presents significant opportunity: Old Mutual boss

Zimbabwe’s biggest financial services group, Old Mutual, says it sees significant opportunities in the economy, underpinned by evolving policy support, growing investment activity, and a stronger push for sustainability.
In a wide-ranging interview with Business Times Editor Phillimon Mhlanga (PM), Old Mutual Zimbabwe chief executive officer Samuel Matsekete (SM) shared his views on the company’s performance, the economic outlook, the sustainability agenda, technology investments, and the status of the group’s suspended shares, among many other issues
Below are excerpts of the interview:
PM: Despite challenging market conditions, Old Mutual reported notable improvements in H1 2025, including an 8% growth in banking topline, a 68% increase in insurance revenue, and a 4% rise in funds under management. What drove this performance?
SM: The underlying drivers continued to be our sustained efforts to grow our customer base. To us, that is one of the strongest anchors of growth. We have had positive net client cash flows—meaning that contributions into our products and funds have been higher than withdrawals through claims or transfers. That supports positive cash flow growth.
The other anchor has been balance sheet growth. We continued to grow investments, deployed more into alternative investments, and delivered competitive fund performance. Our loan book also expanded, with new credit lines supporting that growth. All of these balance sheet levers supported the performance trend you referred to.
PM: You mentioned growing the loan book, and Old Mutual secured about US$38.5m in new credit lines for lending. Which sectors benefited most?
SM: The main beneficiaries have been the energy and agriculture sectors. In energy, we supported the electricity utility. In agriculture, we financed new projects contributing to actual output growth—horticulture, short-cycle crops, long-term plantations, and traditional crops like tobacco.
We have also extended financing to some manufacturing sectors that anchor value chains linked to agriculture. So the biggest beneficiaries have been agriculture, energy, and selected manufacturers.
PM: Treasury projects GDP growth of 6% this year, but many economists remain cautious. How does Old Mutual view the economy, and what are your top three strategic priorities for 2025 and beyond?
SM: We strongly believe the economy presents significant opportunities, and many are beginning to translate into real value. Policy evolution has supported investment in agriculture, mining, and energy. For instance, in renewable energy, we have seen strong focus on promoting independent power producers.
That positioning is more positive than in past periods. But we still need more focus on promoting long-term savings. Long-term savings are vital for financing major projects. With pooled local investments, we optimize scale and reduce financing costs. Local savings are the economy’s “skin in the game.”
Strategically, we maintain a strong long-term focus while responding to short-term risks and opportunities. Our efforts include promoting financial literacy and inclusion, embedding sustainability across our business, supporting startups and SMEs, and investing in digitalization to enhance service delivery.
PM: There are concerns that punitive charges are discouraging long-term savings. What is your response?
SM: Fees and charges are a factor, but affordability has been a priority for us. Through technology, we have sought efficiencies that reduce costs and make services more affordable.
But savings behavior is also about priorities and financial literacy. Through initiatives like On the Money, we show communities they can save by making deliberate financial choices. Confidence issues also play a role—especially around local versus US dollar savings. Policymakers and the financial sector must continue building confidence in long-term instruments.
PM: How is Old Mutual leveraging technology to boost efficiency and customer engagement?
SM: Digitalization is both a disruption and an enabler. We’ve chosen to treat it as an enabler. We are upgrading core systems across banking, asset management, life assurance, and pension administration to improve service delivery.
We’ve deepened our bouquet of digital-native products across asset management, short-term insurance, life assurance, lending, and saving—accessible 24/7. Innovation is one of our core values. We’ve set aside resources to cultivate innovation internally and through customer partnerships, ensuring solutions remain relevant.
PM: Old Mutual has committed about US$100m to sustainability. What are the key initiatives?
SM: The US$100m Renewable Energy Fund is a flagship initiative. It’s a public-private partnership involving Old Mutual, government, UNDP, and private investors. The fund targets scalable renewable energy investments with social impact.
We are prioritizing women- and youth-sponsored projects, alongside community-level initiatives with employment and value chain benefits. Beyond this, we embed sustainability in all investment criteria to ensure financial outcomes are matched by positive environmental and social outcomes.
PM: How is the Reserve Bank’s tight monetary policy affecting your operations?
SM: The interventions have created relative stability in inflation and exchange rates. Interest rates reflect confidence that inflation will remain contained, allowing us to take a more aggressive approach in lending and investment.
However, tighter liquidity means capital markets are not as deep, limiting returns. We believe balance is key—stabilizing fundamentals while ensuring productive sectors continue to access financing. To complement short-term markets, we mobilize offshore credit lines and local long-term savings.
PM: Any new developments on Old Mutual’s suspended ZSE shares?
SM: There have been no new developments. The shares remain suspended. Engagements between Old Mutual Limited and authorities continue—exploring lifting the suspension or creating alternatives for trading. We await further direction from the authorities.
PM: The Reserve Bank is considering shifting to a monocurrency system post-2030. How is Old Mutual preparing?
SM: A local currency is essential for any economy in the long term. Our responsibility is to ensure our products adapt to currency changes. What matters is managing the transition carefully—avoiding loss of value or confidence erosion.
We already operate in a dual-currency environment and are working with regulators to ensure long-term savings remain secure. The key is clear communication and learning from past transitions.i
PM: What message would you like to send to the market?
SM: Old Mutual remains committed to serving customers with the widest range of financial products in Zimbabwe. We continue to invest in capabilities to deliver better service and support economic development.
As a responsible investor, our strategies align with national development priorities and sustainable development goals, ensuring we remain relevant, competitive, and impactful.