Old Mutual Zimbabwe Limited (OML) says it seeks to diversify its property portfolio following the acquisition of 6.6 hectares of land in the resort town of Victoria Falls, a move that will see the financial services provider step into the tourism sector.
Speaking at an analyst briefing on Tuesday, OML, chief executive officer, Jonasi Mushosho said the land is earmarked for hospitality related infrastructure.
“Development of this land will give us a presence in the tourism sector and we seek to diversify our property portfolio,” he said.
During the same period, OML has also embarked on the development of other properties among them the construction of the Eastgate market which is nearing completion and expected to open during the second half period of the year.
Mr Mushosho said developments of stands in Pumula south phase 1 in Bulawayo has been completed and have already been sold out by the end of the H1 of the year.
The CEO however, noted that completion of projects have faced delays due to challenges in sourcing foreign currency for some of the building materials that are not available locally.
There is already a registered interest in the occupation of the new properties a development which will likely help the Group register quick returns on its investments.
“There has been keen interest from prospective tenants and we have now started processing applications. The building demonstrates our commitment to the nation’s economy through the development of small and medium enterprises and it is part of our financial inclusion strategy,” said Mr Mushosho.
The property expansion is in sync with the growth in customer base which the CEO said during the period under review, it grew by 6 percent from 1.2 million customers at the beginning of 2018 to 1.28 million as at 30 June 2018.
“This growth in customer number was mainly driven by the acquisition of new customers in the retail mass market segment of our business,” said Mr Mushosho.
Mr Mushosho said that the expansion drive will enable the Group to increase its geographical presence throughout the country as well as widen the Group’s financial inclusion.
Other key initiatives OML is currently working on is the development of the Pumula South phase 2 residential stands which is expected to be commenced in the H2 of the current year.
OML has also placed commitment on digital platform expansion as they seek to take advantage of the improved volumes in electronic transfers which has seen OML’s fee, commission and other income increase by 23 percent to $42.4 million during the period under review from $34.6 million recorded in the comparative period.
OML is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 17 countries. Its primary operations are in South Africa and the rest of Africa, and have niche businesses in Latin America and Asia
The business is listed on the Johannesburg, London, Zimbabwean, Malawian and Namibian stock exchanges.
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