FINANCIAL services giant Old Mutual Zimbabwe Limited (OMZ) has earmarked US$20 million for capital expenditure in the current year, primarily focused on upgrading its technological infrastructure, among other projects.
The company’s chief executive officer, Samuel Matsekete, told businessdigest that the investment would support growth initiatives across various business lines.
“We are looking at just about US$20 million, mainly to upgrade our technologies or to further enhance them, but also relating to certain infrastructure to support our products and services,” he said.
“For example, in funeral services, we will need more service centres and a greater branch footprint for some of our other business lines. That is where most of the capital expenditure will go — so it is really about supporting growth.”
The capital expenditure allocation is part of OMZ’s strategic plan to enhance operational efficiency, improve customer experience, and drive business expansion.
In its banking business, OMZ has scouted for lines of credit, with new facilities of US$60 million negotiated last year. The credit lines have been extended to clients in key sectors of the economy, including agriculture, manufacturing, distribution, energy, and mining.
Matsekete said the group’s renewable energy fund, launched last year, had so far attracted US$20 million in commitments, representing 20% of the targeted US$100 million it seeks to raise.
“Out of the US$100 million that we are targeting for the renewable energy fund, US$20 million has already been committed, and we are drawing down on that for projects while also looking to bring in more,” Matsekete said.
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“You could say we are at 20% in terms of actual resource allocation, and we are engaging with others who have indicated they will participate. The fund will grow over time, but what we have so far is sufficient for our current pipeline of projects.”
The group, however, noted that Zimbabwe needs sufficient local currency to resolve challenges when investors seek to repatriate shares or dividends, as the country faces a severe liquidity crunch.
South African financial services firm Old Mutual Limited (OML), OMZ’s parent company, revealed last month that the Reserve Bank of Zimbabwe’s policies were affecting the repatriation of funds from its subsidiary.
“The main constraints arise if you lack your own currency, as you then need to procure it, and prioritisation will always favour other critical areas in resource allocation,” Matsekete said.
“But once you have your own currency, the constraints may become business-specific — such as regulatory requirements or risk exposure. For example, we underwrite risks. How much risk are we covering? How much capital must we retain before remitting dividends?”
