CBZ Holdings Redirects Strategy After Regulatory Setback with FMHL

CBZ Holdings Limited has shifted its strategic focus following a block by the Competition and Tariff Commission on further share acquisitions in First Mutual Holdings Limited (FMHL).

The regulatory body, CTC, denied CBZ the chance to increase its stake in FMHL beyond the current 36.22% shareholding.

This decision forced CBZ to cancel its mandatory offer to FMHL’s remaining shareholders, as required by Zimbabwe Stock Exchange rules when a company’s stake exceeds 35%.

CBZ intended to leverage FMHL’s presence in Botswana, Malawi, and Mozambique to bolster its regional market entry.

However, the CTC deemed the acquisition of an additional 31.22% stake in September 2023 sufficient, halting further expansion through FMHL.

CBZ’s balance sheet stood at a robust US$1.2 billion as of September, providing a strong foundation for alternative growth strategies.

Lawrence Nyazema, CBZ’s group CEO, emphasized that despite the setback, they remain significant stakeholders in FMHL.

He highlighted that with Nssa, they control nearly 70% of FMHL, enabling collaborative long-term goals.

Moving forward, CBZ aims to utilize its capital-light subsidiaries for regional expansion, avoiding the complexities of banking regulations.

Nyazema noted that subsidiaries like Datvest could replicate their Zimbabwe success elsewhere, targeting regional growth by June 2025.

This shift signifies CBZ’s intent to explore broader international markets beyond just neighboring countries.

On the home front, CBZ is focusing on enhancing Zimbabwe’s economic liquidity by securing more lines of credit.

The goal, as stated by Nyazema, is to not only benefit CBZ but to positively influence the national economy.

By addressing liquidity challenges, CBZ aims to stabilize the economy, ensuring funding availability for key sectors.

This strategic pivot underscores CBZ’s adaptability and resilience in navigating regulatory landscapes and market dynamics.

CBZ Holdings, under Nyazema’s leadership, continues to look for innovative ways to expand its influence and impact.

Despite the regulatory hurdles, the company remains committed to both local economic support and international growth.

This development marks a new chapter for CBZ, as it seeks alternative pathways for regional penetration and domestic strengthening.