Zimbabwe’s largest bank, Commercial Bank Of Zimbabwe (CBZ) Holdings, has pledged to provide double benefits to its shareholders and customers after acquiring a 36% stake in First Mutual Holdings Limited (FMHL) this week.
Speaking at the Zimbabwe Stock Exchange (ZSE) headquarters on Monday, CBZ CEO, Blessing Mudavanhu, stated that this move aligns with their growth strategy. They aim to combine operations to compete effectively with larger companies in Zimbabwe and the surrounding region.
Mudavanhu emphasized that FMHL’s business model complements CBZHL’s, particularly in the insurance sector. FMHL has regional operations in the SADC region, offering CBZH subsidiaries a gateway to expansion in the region.
“This transaction opens up various opportunities for synergy between our two companies and broadens our product range for our valued clients. By combining these strengths with the advantages of being the largest bank in the country, we’ll create a strong bank assurance model for the Zimbabwean market,” he said.
Mudavanhu believes that the merger will enhance the trading capabilities of both entities across different regions. This will lead to better product management and distribution options, improved customer offerings, and greater resilience against market fluctuations due to a more diversified capital base.
He also mentioned that this transaction will bring significant value to shareholders and benefit the country by facilitating larger economic transactions. Clients, in particular, stand to gain from a broader range of products and services.