FINANCIAL services firm, Zimre Holdings Limited (ZHL), has structured opportunities to capture and grow local and regional capital in anticipation of the decline in official development assistance.
In his second tenure in office, US President Donald Trump has paused aid as part of his inward-looking approach under the Make America Great Again campaign.
Consequently, many local organisations that enjoyed support, funding and grants from the American government lost significant portions of financial assistance.
“In anticipation of the decline in official development assistance, ZHL has structured opportunities to capture and grow local and regional capital,” ZHL said in its trading update for the first quarter ended March 31, 2025.
“The first of these opportunities is the Eagle Real Estate Investment Trust (REIT), a developmental REIT applying modern technologies to bring urbanisation and structural transformation to Zimbabwe,” ZHL said.
The REIT was listed on the Victoria Falls Stock Exchange on Friday last week.
“The second is the capital raise for Emeritus International which seeks to take advantage of regional insurance regulations’ departure from placing risk outside the continent to advocating for exhaustion of local capacity,” ZHL said.
“The transaction will also connect the investment feedback loop, ensuring return on investment to the shareholders while also attending to the Emeritus brand’s market competitiveness and the group’s expansion into new African markets.”
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ZHL said it would continue to drive its “strategy triangle”, making particular use of data to bring about organisational efficiencies, capture untapped markets and strengthen the group ecosystem.
“Total assets were US$223,04 million (ZiG5 969,84 million) from US$208,08 million (ZiG5 569,3 million), a 7% growth,” ZHL said.
“In line with the group’s strategy triangle to pursue a strong cash wallet, net cash generated from operations closed the period in a net positive position.”
The group achieved a 203% growth in profit during the first quarter ended March 31, 2025, to US$1,69 million from the same period last year.
This was driven by growth in the top line and investment income.
“Total income increased by 24% from US$16,87 million (ZiG451,61 million) to US$20,96 million (ZiG561,12 million), emanating from the growth in insurance revenue, non-insurance income growth and positive investment income, mainly fair value gains from equity investments,” ZHL said.
“All the group businesses contributed positively to total income growth.”
ZHL experienced growth in revenue from its reinsurance and reassurance, short-term insurance, property, insurance broking, life and pensions and wealth management segments during the first quarter.
