CBZ Bank Acquires Stake in First Mutual Holdings Limited

​A highly respected international finance and law attorney, Rebecca Gaskin Gain draws upon more than three decades of experience working across multiple continents. Serving in various positions in America, Europe, and Africa, Rebecca Gaskin Gain serves as a non-executive director at Zimbabwe’s CBZ Holdings.

CBZ Holdings, a leading commercial bank in Zimbabwe, has finalized a 31 percent acquisition of First Mutual Holdings Limited. The move marks the entry of CBZ into one of Zimbabwe’s largest insurance and property companies. The acquisition is part of CBZ’s plan to boost its influence in the financial services market. According to the Reserve Bank of Zimbabwe (RBZ), CBZ, Zimbabwe’s largest bank by assets, is also the country’s largest lender, accounting for 31 percent of total bank loans across the nation.

First Mutual Holdings (FML) has been restructuring its businesses, a process that began in 2020, whereby it placed its reinsurance shares into First Mutual Reinsurance. In addition, FML sold 29.1 percent of its shares for an equivalent of $5.3 million to a Botswana-based fund, Aleyo. On January 31, 2022, CBZ held an extraordinary general meeting (EGM) to seek shareholder approval to acquire a 31.22 percent stake in FML, shares previously owned by National Social Security Authority (NSSA). Before the acquisition, CBZ’s shareholding stood at 3.23 percent under PIM Nominees, a special purpose vehicle. The additional shares from NSSA are expected to raise the bank’s stake close to 34.45 percent.

The transaction was expected after CBZ Bank and NSSA formally agreed on the FML stock. After completion of the sale, NSSA will reduce its FML shareholding from 66.22 percent but will still remain FML’s largest shareholder. Reports indicated CBZ might be considering acquiring a smaller ZB Bank, a move expected to consolidate further the bank’s position in Zimbabwe’s banking sector.

Rebecca Gaskin Gain

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