ZHL on the hunt

LIVINGSTONE MARUFU

Zimre Holdings Limited (ZHL), a diversified publicly traded group, is gearing up for an aggressive acquisition spree, setting the stage for transformative growth across Sub-Saharan Africa, Business Times can report.

As it sharpens its focus on regional expansion, ZHL is eyeing strategic takeovers to bolster its balance sheet and gain a competitive edge in an increasingly integrated continental market.

Driven by an unrelenting appetite for growth and a vision to play on a bigger stage, ZHL is aligning its expansion strategy with the opportunities presented by the African Continental Free Trade Area (AfCFTA), while leveraging technology, data, and cross-border financial muscle to consolidate its footprint.

The ambition is clear, ZHL wants to be a continental force to reckon with in insurance, wealth management, and allied financial services.

The development was disclosed by Group Chief Executive Officer Stanley Kudenga .

“Without apologising, we will have more appetite for acquisition,” Kudenga said.

“You will see us looking around, sniffing around for acquisitions that can support our growth. We are going to be looking at growth through consolidation—organic, yes—but we will also be pursuing our targets with high intensity.”

ZHL is turning its gaze outward after a period of internal realignment and resilience-building.

While 2024 tested many firms across the region due to economic headwinds, Kudenga said the year was pivotal in reaffirming the group’s ability to adapt, innovate, and remain agile in the face of volatility.

At the heart of ZHL’s 2025 strategy is balance sheet enhancement. The firm is aggressively pursuing acquisitions not just for market share but to deepen its underwriting capacity, strengthen its financial muscle, and unlock synergies that will enable it to operate more efficiently in regional markets.

This strategic intent is directly aligned with ZHL’s plan to transition into a more data-driven, technology-enabled financial services group.

Kudenga revealed that the group is investing heavily in digital transformation, artificial intelligence (AI), and advanced analytics to drive smarter decision-making and improved customer experiences.

“We are moving to become a data-centric organisation. This means more investment in technology, analytics, and digital infrastructure that supports scalable, efficient, and customer-first operations,” he said.

With the launch of the African Continental Free Trade Area, Africa’s economic landscape is rapidly evolving.

 ZHL is determined to be among the first-movers to take advantage of this sweeping integration by positioning itself across high-growth regional markets.

“Our regional expansion and market diversification plans are being executed with purpose,” said Kudenga.

“The AfCFTA opens new doors, and we are positioning ourselves to walk through them confidently—armed with stronger capital, deeper data, and enhanced operational agility.”

Currently operating through its insurance and reinsurance subsidiaries across several African countries, ZHL intends to consolidate its presence and deepen its penetration in key markets. The focus is on countries with solid macroeconomic fundamentals, growing middle classes, and supportive regulatory frameworks.

A key priority for 2025 is the implementation of Phase 2 of ZHL’s amalgamation strategy, centred around the potential listing of Emeritus International on the Botswana Stock Exchange (BSE).

According to Kudenga, this move is more than a corporate formality. It is a financial strategy aimed at “scaling up the balance sheets of our regional subsidiaries to improve underwriting capacity and competitiveness, while also exposing the group to international best practice and governance standards.”

The listing is expected to attract regional and international investors, inject new capital into ZHL’s operations, and elevate the firm’s visibility across Southern Africa’s financial markets.

Despite a turbulent economic backdrop characterised by inflationary pressures, currency instability, and dampened consumer confidence, ZHL managed to stay on course.

Chairman Desmond Matete, in a statement accompanying the 2024 financial results, described the year as one of “resilience and strategic realignment.”

“While the 2024 operating environment was characterised by economic turbulence, ZHL remains optimistic about the future, leveraging regional growth, digital transformation, and sustainability-focused investments to maintain momentum,” Matete said.

The group’s cash wallet grew to over US$16m in 2024, up from US$10m in the previous year—a 60% increase that signals improved cash generation and prudent capital management.

“Our focus remains on strengthening financial resilience, driving stakeholder value creation, and fostering sustainable business growth,” Matete added.

A cornerstone of ZHL’s strategy is aggressive cash generation.

The company is streamlining operations to ensure higher returns from core business units, while simultaneously disposing of non-core assets to free up capital for high-yield investments and acquisitions.

According to financial analysts, this cash-conscious approach positions ZHL as a nimble and liquid player, capable of snapping up undervalued or strategically aligned assets across the region with speed and decisiveness.

The group is also pursuing improvements in capital efficiency by tightening cost controls, re-negotiating supplier contracts, and digitising back-office functions.

While ZHL’s strategy is ambitious, it is not without risk. Cross-border acquisitions come with integration challenges, regulatory complexities, and geopolitical exposure. There’s also the ever-present threat of currency volatility, particularly in economies where exchange controls remain tight or inflation is unpredictable.

Yet Kudenga remains confident.

“We are entering this phase with clarity, caution, and confidence. Our due diligence frameworks are robust, our governance is strong, and our regional partnerships are aligned with our strategic objectives,” he said.

The market is already taking notice. Analysts say ZHL’s proactive communication, improved earnings profile, and clear strategic roadmap are giving investors confidence.

As Africa integrates, connects, and grows, ZHL intends to be in the thick of it—not just as a participant but as a driver of financial innovation, resilience, and inclusion.

The hunt is on.