Old Mutual denies reports about its viability in Zim

INSURER Old Mutual said yesterday it was business as normal in Zimbabwe, despite media reports suggesting the financial services group was facing expulsion from the country’s financial system.

Media reports emerged last Friday that the highest decision-making body of the Zanu-PF had endorsed a decision to “eject Old Mutual from the financial system” and to shut down the country’s biggest mobile-money platform, Ecocash.

However, Old Mutual’s managing director for the Rest of Africa region, Clement Chinaka, said yesterday the group, and its leadership in Harare, were engaging with all its key stakeholders to seek clarity on the matter.

“As soon as we are in a position to share more detail, we will do so. All services and activities across our business units are continuing to operate as usual.

“The Old Mutual Group and its operations across the African continent, including Old Mutual Zimbabwe and CABS, remain financially strong, stable and sound,” Chinaka said.

CABS, a member of the Old Mutual Group, is an established brand name in the financial retail market in Zimbabwe and it offers a diverse range of financial products and services that includes transaction and savings accounts, mobile banking, mortgage loans, money market investments, term deposits and pay-roll loans.

Old Mutual operates in 14 countries in Africa. In Zimbabwe, it is the largest financial services company.

Its problems surfaced after Zimbabwe suspended all monetary transactions on phone-based mobile money platforms and trading on the Zimbabwe Stock Exchange towards the end of June, with the Ministry of Information stating that the measures were to deal with malpractice, criminality and economic sabotage.

However, Chinaka said the group had a long track record in the country and had been operating as a responsible business and trusted brand in Zimbabwe for more than 120 years.

“During this time, it has been fully committed to contributing to the sustainable long-term development of the Zimbabwean economy.

“We thank our clients, customers, employees and communities in Zimbabwe as well as the government and all our key stakeholders for their continued support,” Chinaka said.