ZIMRE plans US$40m capital raise to accelerate pan-African expansion
LIVINGSTONE MARUFU
Zimre Holdings Limited (ZHL) is planning to raise approximately US$40m in fresh capital to support its regional expansion drive and strengthen its balance sheet amid challenging economic conditions.
The capital injection will fund the group’s pan-African ambitions, following the consolidation of its regional reinsurance operations under a unified brand—Emeritus International Reinsurance.
This strategic move is expected to position ZHL as a formidable player in the continental reinsurance space.
Group Chief Executive Officer Stanley Kudenga confirmed that the capital raise would be unveiled in the second quarter of 2025, pending regulatory approvals.
“We are working with advisors and expect to make key announcements soon. The funding will bolster our Africa strategy,” Kudenga said.
While Kudenga and Group Chief Finance Officer Zvenyika Zvenyika refused to disclose the exact figure, sources close to the development said ZHL is targeting a raise of around US$40m.
ZHL currently operates in five regional markets—Botswana, Malawi, Mozambique, Zambia and Zimbabwe—and is looking to extend its footprint beyond Southern Africa.
“Our ambition has always been to become a pan-African player. With the creation of Emeritus International Reinsurance, we are better positioned to inject competitive capital into our regional units and expand our presence,” Kudenga said.
In 2024, regional operations contributed over 40% of ZHL’s total income, up from 30% in the previous year. Kudenga attributed the improved performance to strong fundamentals, including a low claims ratio and ongoing engagements with regulators in various countries to improve retention rates.
“Even with relatively low retention, we are generating profits and delivering value to shareholders,” he noted.
ZHL continues to leverage group synergies and strategic partnerships across its insurance value chain to drive growth. The group reported a 25% increase in total income to US$88.02m, up from US$70.37m in the previous year. This was buoyed by robust insurance contract revenues, improved capitalisation of the Mozambique reinsurance business, and the restructuring of the Botswana unit’s balance sheet.
Investment income contributed 17% to total income, driven by returns from property and financial assets. The group’s real estate segment also showed strong performance, with rental income rising 22% due to improved occupancy levels.
ZHL’s financial position remains solid, with 87% of income now denominated in US dollars—up from 75% in 2023. The group closed the year with a net profit of US$10.33 million, reflecting a remarkable 471% increase. This growth was anchored by strong showings in life and pensions, reinsurance, and real estate.
Total assets rose 14% to US$208 million, while net cash from operations surged 51% to US$15.82 million, underpinned by effective working capital management.
Following its impressive performance, ZHL declared a dividend and is set to list its Eagle REIT in May 2025—a move expected to unlock shareholder value and further enhance brand visibility.
