Story by Owen Mandovha, Business Reporter
THE National Social Security Authority (NSSA) is set to channel proceeds from its 36 percent stake disposal in First Mutual Limited to CBZ Holdings towards improving pensioners’ welfare.
NSSA general manager, Dr Charles Shava says while the move is meant to balance their investment portfolio, their members and pensioners are set to benefit from the proceeds of disposing their stake in First Mutual Limited through improved pay-outs.
“We remain active shareholders in both CBZ and FML despite disposing our 36 percent stake in FML to CBZ. But the proceeds of this sale are largely going to boost the members’ pay-outs by way of improving our cash reserves. So, pensioners are the biggest beneficiaries in this transaction,” said Dr Shava.
CBZ Holdings Group Managing Director, Dr Blessing Mudavanhu said the acquisition bolsters their financial muscle to undertake mega infrastructural projects.
“If you look at a country like South Africa for example, Standard Bank’s total balance is almost 40 percent of SA’s GDP which means they have enough resources to carry out huge projects in that country whereas here in Zimbabwe all banks balance sheets combined can’t even exceed probably 20 percent of the country’s GDP. Our strategy is to be as big as possible so that we can develop this nation on our own with local resources,” he said.
The deal is a major development which is expected to transform the government’s financial industry by way of creating institutions with strong balance sheets that can support the economy.
