OLD Mutual Zimbabwe has acknowledged that the prolonged suspension of its parent company’s shares from the Zimbabwe Stock Exchange (ZSE) has had “indirect adverse impacts” on clients and asset managers, though the group insists its local operations remain resilient and on a growth trajectory.
The suspension dates back to June 2020, when authorities froze trading in Old Mutual, PPC and SeedCo shares, accusing the counters of driving parallel market volatility through fungibility.
While SeedCo has since shifted its listing to the Victoria Falls Stock Exchange, the Old Mutual and PPC suspensions remain in force despite years of periodic discussions. Market analysts have long warned that sidelining Johannesburg Stock Exchange-listed heavyweights, Old Mutual and PPC, has undermined key market indicators and thinned liquidity on the ZSE.
Old Mutual Zimbabwe Group CEO Sam Matsekete told this publication that the absence of Old Mutual Limited (OML) shares from the local bourse has constrained investors’ flexibility and dented confidence in some market segments.
“Some of our clients would have wanted to sell, some would have wanted to buy,” Matsekete explained.
“And we’ve seen these implications come through to say, how can I access the Old Mutual share or can I sell the Old Mutual share. So, there is an indirect impact.”
He added that asset managers running portfolios with Old Mutual exposure have been particularly affected, unable to rebalance positions in line with changing market conditions.
Beyond trading disruptions, Matsekete acknowledged that perceptions have also been affected, with some clients conflating Old Mutual Zimbabwe’s performance with the unresolved suspension of its parent company’s stock.
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“Indirectly, there could be issues around confidence,” he said.
Despite this, Matsekete emphasised that Old Mutual Zimbabwe has continued to grow, expanding into new customer segments and aligning initiatives with national development priorities.
“We have continued to grow, to extend our reach, and we’ve also continued to receive the support of regulators and policymakers. That is something that we always cherish and are thankful about," he said.
Matsekete said dialogue with authorities was being handled at the parent company level, with Old Mutual Limited leading negotiations on possible solutions.
“This is a matter in the purview of our principals. They negotiate and engage with the authorities here because the OML listing really is our holding company,” he said.
“I know that there has been a number of engagements to try and see if there can be a way forward that allows parties invested in the share, or those that want to invest, to trade.”
For now, Matsekete noted, the matter rests with regulators.
“Where we are now with the authorities is to explore really what could be done in the meantime if the suspension can be lifted. That is the prerogative of our regulators,” he said.
While the market awaits clarity, Old Mutual Zimbabwe says it remains focused on implementing its domestic growth strategy, leveraging innovation and policy support to deepen its presence.
