Johannesburg, South Africa — Africa’s largest insurer by assets, Old Mutual, has reentered Zimbabwe’s capital markets via the US dollar-denominated Victoria Falls Stock Exchange (VFEX), marking a significant return after a six-year suspension.
The move, which occurred on Wednesday, is a strategic step amidst the nation’s economic recovery and the expansion of the regional insurance market.
In June 2020, Old Mutual’s shares were suspended on the Zimbabwe Stock Exchange (ZSE) due to the country’s severe currency crisis, characterized by hyperinflation and the devaluation of the Zimbabwean dollar.
The VFEX was established to address such currency risks, and Old Mutual’s shares opened at 76 US cents, closing at 78. 17 cents, valuing the insurer at approximately $51 million. This valuation underscores Old Mutual’s substantial market presence and growth potential in Zimbabwe’s recovering economy.
Industry projections indicate a significant expansion of the Africa insurance market, with Markwide Research forecasting a Compound Annual Growth Rate (CAGR) of 6. 80% from $88. 5 billion in 2026 to $159.
99 billion by 2035.
The VFEX’s establishment in 2020 has seen it surpass the long-standing Zimbabwe Stock Exchange (ZSE) in market value, following the high-profile listing of Econet InfraCo. Old Mutual’s listing on VFEX is expected to attract both domestic and international investors, providing clearer valuation and reducing foreign-currency risk.
The insurer’s return to the Zimbabwean market is seen as a vote of confidence in the nation’s economic recovery and the insurance sector’s growth potential. It also reflects Old Mutual’s commitment to the African market, where it has been a key player for years.
In South Africa, where Old Mutual is headquartered, the company’s stock closed at R12. 56, reflecting its robust regional presence.
The insurer’s re-entry into the Zimbabwean market is anticipated to strengthen its position as a leading player in the African insurance industry.
As Zimbabwe continues to recover from the currency crisis, Old Mutual’s return is a positive signal for investors and businesses.
The company’s re-entry is expected to contribute to the broader economic recovery and the development of the insurance sector in Zimbabwe. Kicker: Old Mutual’s re-entry into the Zimbabwean market underscores the resilience of the African insurance industry and the region’s growth potential.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Adekunle Agbetiloye
