ZHL edges closer to US$20m deal
LIVINGSTONE MARUFU
Zimre Holdings Limited (ZHL), the publicly traded diversified group, is edging closer to securing US$20m as part of a US$50m capitalisation programme for its reinsurance cluster, a strategic initiative aimed at accelerating its expansion across African markets, Business Times can report.
The first-phase capital injection will strengthen ZHL’s regional reinsurance operations, with Botswana positioned as the group’s strategic hub for both regional and continental growth.
ZHL already operates reinsurance businesses in Botswana, Malawi and Mozambique, and is preparing to establish operations in Côte d’Ivoire as it extends its footprint into West Africa.
Speaking on the sidelines of the group’s Annual General Meeting (AGM), chief executive officer Stanley Kudenga said the company had made significant progress in mobilising the capital required for its continental expansion strategy.
“Our reinsurance cluster capitalisation requirement is US$50m over two years, but I am happy to share that we are in the final stages of securing US$20m for the immediate first phase. We will make major announcements on the capitalisation later this month,” Kudenga said.
He said the capitalisation programme would be implemented in phases, with the remaining funding expected to be secured next year.
As part of the funding strategy, ZHL is also seeking to unlock value from non-core investments, including its shareholding in CFI Holdings, which management believes could generate approximately US$15 million.
The fresh capital is expected to significantly enhance the underwriting capacity of the group’s regional reinsurance operations, enabling ZHL to compete more effectively with larger continental players while strengthening its presence across African markets.
The capital raise forms part of a broader strategy to optimise ZHL’s insurance value chain, deepen integration across its ecosystem and unlock synergies through strategic partnerships both locally and regionally.
Management expects the initiative to improve control over premium flows, enhance capital productivity and ultimately deliver stronger, sustainable returns for shareholders.
The expansion drive comes as ZHL continues to post solid financial performance.
For the five months ended May 31, 2026, profit after tax increased 5% compared to the same period last year, supported by improved operational efficiencies and robust investment income.
Total income grew 20% to US$49.9m, up from US$41.66m in the comparable period, driven by a 23% increase in insurance contract revenue and strong contributions from non-insurance subsidiaries, whose revenues doubled year-on-year.
The group’s financial position also strengthened considerably, with total assets rising 43% to US$298.28m, while total equity increased 47% to US$89.08m, reflecting sustained value creation.
Operationally, ZHL’s diversified portfolio continued to deliver resilient performance across its key business segments.
The insurance division recorded strong organic growth, particularly in regional markets, while Zimbabwean operations benefited from increased new business.
Across the region, operations in Botswana, Malawi, Mozambique and Zambia navigated mixed economic conditions, with the group’s diversified pan-African footprint helping cushion country-specific risks while capturing growth opportunities in multiple markets.
