FINANCIAL services group, Old Mutual Zimbabwe increased investments in unlisted firms by 8,44% to ZiG3,33 billion during the half year ended June 30, 2025, according to the firm’s financial statements.
Investments in unlisted companies were valued at ZiG3,07 billion at the end of 2024, according to the financial statements, which demonstrate the group’s ambition to prop up companies across a wide spectrum of the economy.
The figures relate to unlisted entities where the group holds more than 20% equity, which must be disclosed under International Financial Reporting Standards (IFRS) 9.
The bulk of the investments are being channelled into agriculture, small to medium enterprises (SMEs), and infrastructure projects.
Already, 20% of Old Mutual’s ZiG6,87 billion loan book has been channelled into agriculture, supporting food security and rural incomes.
“The…investments in which the group holds more than 20% have been accounted for at fair value under IFRS 9 rather than as investment in associates under IAS 28 as these investments, with the exception of the investment in Nedbank Zimbabwe, back investment contracts with discretionary participating features and investment contracts,” Old Mutual said in a commentary accompanying its financial results for the period.
“The group has accounted for unlisted investments of this nature on the basis of IFRS 9, as financial assets at fair value through profit or loss, notwithstanding the percentage holding in each entity.
“The… investments, which originate from the investments of policyholder funds, with the exception of the investment in Nedbank Zimbabwe, are invested into investment linked insurance funds and funds which operate like unit trusts which are managed on a fair value basis.”
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The group is backing 837 SMEs in food processing, construction, and renewable energy, while rolling out climate resilience training and a weather-index insurance pool to protect small businesses and households.
With 76,1% of Zimbabwe’s 204 798 operational businesses now informal — compared to about 40% before Covid -19 — Old Mutual’s pivot into unlisted firms reflects the reality that most economic activity lies outside the stock market.
Old Mutual is positioning itself as a critical partner in job creation, climate adaptation, and industrial growth, one analyst told Standard Business.
Some of the firm’s holdings are in Takura Fund III, Nedbank Zimbabwe (held by shareholders), Lobels Holdings, Manica Boards and Doors, Tenpill, Kupinga Renewable Energy, and Great Zimbabwe Hydro.
Other investments include solar ventures like Richaw Solar Tech and Solgas.
They also include agro-food names such as Glytime Foods and Plaza Bakery, reflecting the group’s broad exposure to infrastructure, renewables, food, and manufacturing companies outside the stock exchange.
Old Mutual clarified how some large holdings are treated.
“These funds back investment contracts with discretionary participating features and investment contracts.
“Although the group holds 74,3% in Takura Fund III, this fund has not been consolidated, as management have assessed that they do not exercise control over this fund, which would necessitate consolidation,” it said.
“The fund is a pooled investment, and the group does not have the power to exercise decisions over how the fund is managed, over key management personnel or their appointment, or to influence key operational decision-making; hence, a decision has been taken to recognise this fund at fair value in accordance with IFRS 9.
“The group has significant influence in Manica Boards and Doors due to its shareholding and representation on the board.
“However, the group applied the consolidation exemption per IAS 28 and measured the investment at fair value as the asset backs investment-linked insurance contracts.”
On its Nedbank Zimbabwe stake, Old Mutual said:
“The group is not represented on the Nedbank Zimbabwe board, does not have significant transactions with Nedbank Zimbabwe, and as such, the directors do not believe that (Old Mutual) is in a position to exercise significant influence over Nedbank Zimbabwe, notwithstanding the size of the shareholding.”
Currently, only 38 companies are listed on the Zimbabwe Stock Exchange and 14 on the Victoria Falls Stock Exchange.
These demonstrated that outside listed entities, pockets of opportunities are also rising.
