‘Zimre thinking globally’

ZIMRE Holdings Limited recently appointed Chakanyuka Nziradzemhuka (CN, pictured) as its Chief Operating Officer (COO). Nziradzemhuka who is an investment banker has been instrumental in the implementation of the ZHL strategy, which has seen the group consolidate its heartland investments. Senior business reporter Melody Chikono (MC) this week spoke to Nziradzemhuka who said the ZHL’s future investment approach will be aimed at creating an ecosystem that enriches the value proposition for all stakeholders, delivering value for customers, employees and shareholders. Below are the excerpts of the interview.

MC: Congratulations on your appointment. What is your vision for the company in line with your new role?

CN: Thank you. There are exciting times ahead. I envision taking part in the journey to make ZHL a pan-African business across its business lines. ZHL’s insurance arm already has a presence in several Southern African Development Community (Sadc) countries and has developed strong relationships in East, Central and West Africa. This sets the bedrock for extending other business lines into those markets.

MC: You have been instrumental in the implementation of the ZHL strategy, which saw the group consolidating its heartland investments. How do you see the company’s investment roadmap going into the future?

CN: Firstly, I would like to extend my gratitude and appreciation to the ZHL team (staff and board) for the contributions and efforts that delivered the strategic aspirations of restoring heartland investments. The future investment approach will be aimed at creating an ecosystem that enriches the value proposition for all stakeholders; delivering value for customers, employees and shareholders as well. The investment roadmap will be aimed at strengthening the existing value chain and business model as well as creating new revenue lines that leverage off the existing balance sheet and high growth sectors of the economy.

MC: What could be the challenges in line with that?

CN: Whereas legacy challenges are always an immediate buzz, I am a firm believer that yesterday’s lessons enrich today’s knowledge which influences tomorrow’s actions. We will face new challenges that come our way and trust that as a team we can deal with the myriad of challenges that may arise in the multiple jurisdictions where we have operations. These could be economic, political, environmental and social. That said, the greatest challenge would be a failure of culture to transition into modern day global trends. Covid-19 has brought in multiple dimensions to the business but what differentiates the group from its peers is the ability of human capital to work with minimal supervision, thinking globally, and service to the customer through relevant innovation and technology. Technology as an enabler should be deployed to enhance the customer service experience.

MC: How do you see ZHL in the next five years using that strategy?

CN: I foresee a business that would be well integrated into the daily living of humanity in one way or another. It will be a key enabler to economic growth and a catalyst to multiple infrastructure projects through risk management and investment solutions as well as advisory services. Investment banking will be instrumental to the group generating sustainable returns for shareholders and policyholders by sweating the balance sheet and growth.

MC: You are coming in with 15 years of experience in investment banking. How do you see this experience adding value to ZHL?

CN: Experience is the best teacher! I am looking to learn more as I participate in the journey of ZHL becoming a pan African conglomerate. That said, my keen admiration for strategy and critical thinking is an asset I believe will be of immense value to ZHL. No mountain is too big to climb and the resolve gained through the years to navigate unfamiliar and volatile terrain will enable me to drive the growth agenda. With added guidance from seasoned mentors and advisors to nurture this evolution, I hope to enhance my contribution to the ZHL Group. That said, ZHL will also benefit from the skills transfer that I will cultivate into the young talent in the group, ensuring continuity and encouraging new ideas.

MC: Having that vast experience, what can you say about investment banking in Zimbabwe?

CN: Investment banking in Zimbabwe has not been vibrant to the same level predecessors of my time experienced. Maybe this could be attributed to the economic slump and challenges since 2008. However, I would say I have been privileged enough in my career to interact with senior practitioners who have taken on some of the most influential and market changing transactions in the economy. I have a strong conviction that well cultured investment banking solutions will be capable of making Zimbabwe a much better country in terms of attracting local and foreign capital into the critical sectors that will anchor our country to be among the best middle-class economies in Africa.

MC: What have been the drawbacks in this turbulent economy?

CN: We are not operating at the optimal capacity of the potential we possess. A number of factors have been drawbacks but just to mention a few I would say;

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The limited foreign lines of credit,

The dilemma of inflation pressures versus tenure of local deposits in the financial system,

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The skew between the formal sector versus the informal sector. The drawback lies in the inability of the formal systems to embrace the “new” economy where apparently some decent cash flows are circulating.

MC: Do you think the Zimbabwean economy offers a level playing field for investment banking to thrive?

CN: It does, but just like any other operation the depth of your network is a key requirement in your ammunition in this industry. Relationships and management thereof are key. Most opportunities and solutions are generic but without a clear understanding of the intimate details to your prospective clients’ needs; proposed solutions may not be different from what everyone else offers. So the economy offers opportunities but the solutions that win the day are the ones that address the needs of the economy.

MC: What key message do you have for the market when it comes to investment banking?

CN: Behind every daily basic experience in human living is an investment banking structure that has enabled goods, services, and commodities to move from supplier to the customer. The market should expect more innovative structures that will see improved economic activity and improve the overall standard of living.

MC: What is the group's outlook for 2022? CN: 2022 is the momentum year after the restructuring of the group in 2021. The group will be focused on optimising operations to ensure that the value chain is efficient and more refined to deliver the promises made to shareholders during the restructuring journey. This will demand the ZHL team putting the multiple pieces in their rightful place and sufficiently capacitating operations to take on the new sharpened vision. We have positive expectations of the economy’s performance and that should be a great base for us. We are also confident that investment banking will be pivotal to the attainment of the strategic goals of the group in 2022.