​McKinsey & Company’s 2023 American SME (small and medium-sized enterprise) survey found that the domestic banking industry has a 17 percent share of small-business banking. However, many experts say that banks could do a much better job of meeting customer needs in this sector.

SMEs present a higher lending risk than established corporations, so banks have historically reluctantly worked with them. To take advantage of the SME sector's growth opportunities, McKinsey recommends taking a “digital-first approach with a personal touch.” Artificial intelligence (AI) and embedded finance (integrating financial services into nonfinancial services and apps) are among many important digital tools in the banking sector.

The software development service provider Intellect Soft echoes this sentiment, claiming that “FinTech innovations” can generate value for SMEs. These innovations range from algorithms that assess creditworthiness to rapidly vet loan applications to online interfaces customized to meet each customer's unique demands. Forbes magazine presents the example of a Canadian bank employing AI modeling to give SMEs a constantly updated picture of their financial health.

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FinTech, the marriage of finance and technology, is rapidly reshaping financial landscapes across the globe. In developing markets, it holds immense potential for financial inclusion - bringing unbanked populations into the financial fold through mobile money, digital lending, and other innovative solutions. However, this rapid change presents a challenge for regulators. Striking a balance between fostering innovation and protecting consumers from potential risk requires a nuanced approach.

Traditional regulations, designed for brick-and-mortar institutions, often struggle to encompass the diverse and agile nature of FinTech companies. This can stifle innovation and hinder financial inclusion goals. Developing economies, however, cannot afford to ignore potential risks like money laundering or data breaches.

Regulators can navigate this complex terrain by beginning with regulatory sandboxes. These designated spaces allow FinTech companies to test their products in a controlled environment with relaxed regulations. This fosters innovation while mitigating risk.

Another key aspect of impactful regulation is risk-based supervision. Instead of a one-size-fits-all approach, regulators can tailor their oversight based on the size, complexity, and risk profile of each FinTech company.

Collaboration between regulators, industry players, and consumer protection agencies is also necessary to develop clear and adaptable regulations that promote responsible innovation.

The path ahead requires a forward-thinking approach. By embracing regulatory innovation and fostering collaboration, developing economies can harness the power of FinTech to unlock financial inclusion and economic growth, while safeguarding the financial system and its citizens.

​The Commercial Bank of Zimbabwe (CBZ) Holdings, which owns CBZ Bank Limited, launched in 1980 as а joint venture. The company faced governance issues and financial distress that nearly led to its collapse. In response, the government assumed full ownership in 1991, transforming the troubled bank. Under the new direction, CBZ Holdings has expanded through selective acquisitions and sustainability investments.

In 2022, the organization sought to demonstrate environmental stewardship and support Zimbabwe's renewable energy transition amid regular nationwide blackouts from aging coal plants. It invested 2 percent of its annual earnings into expanding solar power infrastructure to provide reliable electricity. By financing the growth of solar energy, CBZ aims to power the nation while cementing its reputation as an innovative financial leader creating a low-carbon economic future.

CBZ Holdings also recognizes that sustainable business practices and climate action are linked to responsible corporate stewardship and long-term value creation. The group is investing in several carbon credits (tradable permits to reduce or remove greenhouse gas emissions) to augment its environmental credentials and reinforce thought leadership on this issue. Each carbon credit represents reducing or removing one metric ton of carbon dioxide. This holistic focus on low-carbon solutions demonstrates the bank's understanding that moving toward wind and solar power is integral for energy security and Zimbabwe's inclusive green growth agenda.

​Since acquiring First Mutual Holding Limited (FMHL), CBZ has strategically positioned itself as a leading financial services group in Zimbabwe. A significant move in this direction was the restructuring of its board members. In December 2023, Mr. Luxon Zembe, a seasoned banker and business management consultant, assumed the role of acting chairman of CBZ Holdings.

Mr. Zembe will oversee the company's merger with ZB Financial Holdings in his new position. He has been in corporate governance and strategic planning for over three decades. His appointment as the new acting chairman of CBZ Holdings follows the retirement notice tendered by Mr. Marc Holtzman, the company’s former director. Mr. Zembe officially assumed his new role on December 31, 2023.

Another noteworthy addition to the boardroom is Mr. Lawrence Nyazema, the acting group executive officer, succeeding the retired Dr. Blessing Mudavanhu. Mr. Nyazema also assumed his role on December 31, 2023, Dr. Mudavanhu’s official retirement date.

​Greenhouse gases like carbon dioxide (CO2) come from traditional energy sources, which are based on the burning of fossil fuels. Some believe that the process contributes to climate change. Therefore, some in the energy and related sectors have sought alternatives with clean energy methods.

Solar power plays a leading role as a renewable and available energy resource. Improvements in solar technology have made it more affordable to provide power to individual houses, businesses, and communities.

Wind power has become another clean energy option. The wind turbines use the wind's kinetic energy and turn it into electricity. Wind power complements hydropower, which utilizes the kinetic energy of flowing water, and geothermal energy, which harnesses heat generated within the earth.

Technological advancements have helped spread clean energy. Energy storage technologies like advanced batteries promise a constant flow of energy. The innovation seeks to overcome the inherent intermittency of some renewable sources, making clean energy a trustworthy option in catering to different energy requirements across society.

​The advent of financial technology, or fintech, has been a game-changer, particularly in developing markets. As these regions embrace digital transformation, effective fintech regulation becomes paramount for sustained economic growth, financial inclusion, and stability.

Developing markets often face higher levels of economic volatility. Clear guidelines protect consumers from fraudulent practices, ensuring they can trust digital financial services. The trust attracts more investors, fostering a healthy financial ecosystem.

Innovation in financial technology is synonymous with risk. Regulatory frameworks act as a safeguard, mitigating potential risks associated with cyber threats, data breaches, and other technological vulnerabilities.

Well-crafted fintech regulations create an environment that encourages innovation and entrepreneurship. Startups and established financial institutions thrive with a clear regulatory roadmap. It stimulates economic growth, job creation, and the development of a robust digital infrastructure.

Harmonized fintech regulations in developing markets facilitate international cooperation, creating an environment where businesses can seamlessly operate across borders. It enhances economic ties and opens up new avenues for growth and innovation.

The integrated nature of financial systems means that a failure in one area can have far-reaching consequences. This is particularly crucial in developing markets where vulnerabilities may be more pronounced. Therefore, fintech regulation helps prevent systemic risks by establishing standards and protocols that ensure the stability and resilience of the financial sector.

​The mergers and acquisitions (M&A) market is ever-evolving, and predicting the future can be challenging. However, several trends continue to shape the M&A market.

The digital transformation is increasingly shaping M&A activity as companies adopt new capabilities and technologies to stay competitive. For example, artificial intelligence is a major trend as its disruptive impact on business operations creates M&A opportunities. Today, both corporate and private equity firms are moving to acquire new technology-based businesses (or exit) to monetize returns.

As they seek to acquire companies, the role of private equity firms is expected to grow more active in the M&A arena. Also, companies are increasingly looking for M&A partners that are closely aligned to their core. For example, biotech firms are now pairing up with pharmaceutical companies.

Increasingly, companies seek to reduce their impact on climate as they also adopt net-zero strategies. The ensuing energy transition has created huge disruption in many industries, which means M&A opportunities. For example, original equipment manufacturers (OEMs) and the automotive industries are acquiring companies in the mining sector as they seek to secure the supply of minerals used in battery production.

​CBZ Bank, Zimbabwe's largest financial institution, announced the acquisition of an additional 31% stake in First Mutual Holdings Limited, the country's leading insurance and property firm. Before the acquisition, CBZ Bank had a 3.23% stake in FML via a PIM Nominees account. The additional 31% shareholding was purchased from the National Social Security Authority (NSSA), FML's largest shareholder with 66.22%. After the transaction, NSSA remained the majority shareholder with a 35% stake, followed by CBZ Bank with 34%. CBZ Bank announced after shareholders approved the transaction at the bank's extraordinary annual general meeting. According to data from the Reserve Bank of Zimbabwe, CBZ Bank is the country's largest lender, having disbursed 31% of loans across the country.

Insurance and Pensions Commission (IPEC) advised NSSA to restructure its shareholding in various companies as it had flouted investment procedures. NSSA began an exercise to redistribute its investment portfolio, including downgrading its stake in FML. In a circular to its shareholders, CBZ Bank said the board approved the firm's bid to pursue the acquisition after exploring the mutual benefits between CBZ Bank and FMH Limited. According to Rumbidzayi Angeline Jakanani, CBZ's group legal secretary, the bank was declared the highest bidder in June 2021, paving the way for a formal agreement with NSSA to begin the acquisition of 31.22% stake. The total price agreed for the acquisition was $6,356 billion, translating to $28 for each FMHL Ordinary share.

​Rebecca Gaskin Gain has served as an independent non-executive director with CBZ Holdings, Zimbabwe’s largest financial institution, since 2020. She also sits on the board of directors. Rebecca Gaskin Gain is primarily involved with the transformation strategy at the company to support continued CBZ growth as both a corporate finance and investment banking institution.

Early in 2022, CBZ Holdings Limited (CBZHL) announced intentions to further expand its presence in the financial sector via an acquisition of a 31.22 percent stake in First Mutual Holdings Limited (FMHL). The CBZHL board of directors agreed to purchase the FMHL stake from the National Social Security Agency at $28 per share, or approximately $6.356 billion, plus transaction costs of about $91 million. CBZHL netted nearly 227 million shares in the transaction.

The board approved the bid, in part, due to the synergistic potential between CBZHL and FMHL. Speaking on behalf of CBZHL, group legal corporate secretary Rumbidzayi Angeline Jakanani said the acquisition was fueled by “domestic and regional trends as well as the commercial landscape … and potential growth opportunities.”

​Rebecca Gaskin Gain is an experienced investment and business advisor. She is a lawyer by profession and became a member of the New York State Bar Association in 1990. Subsequently, Rebecca Gaskin Gain has pursued a successful career in foreign direct investment. She has worked with private investors, multilateral agencies, bilateral agencies, large listed companies, and governments.

Investors often make foreign investments to diversify their portfolios. This is a practice designed to safeguard investors from volatility. However, before any foreign investment, the risk of the investment must be considered.

Economic risk is a major factor in assessing the risk of foreign investment. It is the estimation of a country’s capacity to repay its debts. A country with a stronger economy signifies a reliable investment opportunity. Political risk heavily impacts the safety of foreign investments as the political decisions made by a country will impact any investments in the country. This risk assesses the stance of a country as regards maintaining a favorable climate for foreign investors.

These factors are very important in assessing the level of risk in foreign investment before deciding whether to proceed. Understanding these concepts is crucial for potential investors to make good investment decisions. Several sources for information on these factors include ratings from rating agencies like S&P, Fitch, and Moody’s.