CBZ unveils plans to expand in Africa

Source: The Herald – Breaking news.

---

Business Reporter

CBZ Holdings, Zimbabwe’s largest financial institution, has unveiled plans to expand its operations into regional markets, marking a significant step in the group’s strategic growth.

Chief executive officer Mr Lawrence Nyazema, speaking at a gathering of clients and partners yesterday, outlined the company’s vision to transcend its domestic boundaries and establish a formidable presence in the broader African financial landscape.

Mr Nyazema emphasised that this international expansion is not merely an opportunistic move, but a calculated strategy driven by the need to support its existing partners and capitalise on the vast potential of the African market.

“We cannot remain a Zimbabwean play because our partners are venturing out into the world, and we cannot leave them to go there alone,” he stated, highlighting the importance of mutual growth and support.

“The company’s initial focus will be on regional markets, with the first international expansion targeted for this year. Mr Nyazema’s comments indicated a strong intent to move quickly. “We are actively engaging key stakeholders as we prepare to expand into regional markets,” he affirmed.

South Africa, in particular, has emerged as a key target.

Mr Nyazema pointed to South Africa’s dominance in the continent’s insurance sector, stating, “70 percent of insurance revenues for the continent are in South Africa.

“So, by staying away from South Africa, it means you are staying away from 70 percent of the budget.”

This strategic focus underscores CBZ’s commitment to capturing significant market share and driving substantial revenue growth.

However, the company is adopting a measured approach, acknowledging its relative size compared to established players in the target markets.

“We acknowledge our size, that we may be big in Zim, but we are very small elsewhere,” Mr Nyazema admitted.

To mitigate this, CBZ plans to leverage partnerships and explore various expansion methods, including joint ventures (JDs), greenfield investments, and mergers and acquisitions (M&A). Botswana is also playing a strategic role in CBZ’s international ambitions. Nyazema highlighted the country’s favorable capital environment and regulatory framework.

“We like Botswana not as a market where we generate revenue, but we like Botswana because it’s friendly from a capital perspective,” he explained. “We believe we’ll be able to raise reasonably priced capital either to deploy in Botswana or to deploy elsewhere in the world.”

The CEO also addressed the importance of innovation and digital transformation in driving CBZ’s international growth.

He emphasised the company’s commitment to leveraging technology to enhance customer experience and streamline operations. “We are leveraging data and digital solutions to create smarter and more accessible financial products,” he stated. CBZ’s international expansion plans are part of a broader strategic restructuring aimed at positioning the company for long-term success in an evolving financial landscape.

The company’s focus on building resilience, embracing change, and delivering value to its customers and partners underscores its commitment to sustainable growth.

As CBZ Holdings embarks on this exciting new chapter, its strategic vision and commitment to partnership are poised to drive its success in the competitive African financial market.