Diversified financial services group ZimRe Holdings Limited has yet to complete its planned US$40 million capital raise through the listing of its subsidiary, EmeritusRe International (EI), on the Botswana Stock Exchange (BSE), citing regulatory and stakeholder-related challenges.
In August 2025, ZimRe announced plans to raise up to US$40 million via the EI listing to strengthen its balance sheet, with the transaction initially targeted for completion by the end of the current quarter.
EI was established following the consolidation of ZimRe’s two Botswana-based reinsurance operations, a move enabled by regulatory changes in 2023 that allowed the group to underwrite domestic business in the market.
Despite the delay, ZimRe continues to post balance sheet growth.
As at September 2025, the group’s total assets stood at US$260,8 million, representing a 25% increase from US$208,1 million in the prior comparative period, largely driven by growth in investment properties and financial assets.
“The target raise is a strategic aspiration that the group desires to attain,” ZimRe group chief operating officer Chakanyuka Nziradzemhuka told businessdigest.
“The journey involves various processes, which include various stakeholders (regulatory and shareholders alike). This has not yet been achieved, but the ship is set sail.”
He said the group was operating in a challenging environment characterised by high business acquisition costs, macroeconomic pressures and evolving regulatory requirements.
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“The industry has experienced challenges, much like most southern African markets,” Nziradzemhuka said.
“Some of them include high business acquisition expenses, which have contributed to low penetration levels, regulatory changes calling on global standards, that do not necessarily favour less mature markets compared to where these standards are originating from.”
Despite these headwinds, he said ZimRe was confident in its fundamentals, underpinned by disciplined underwriting, prudent financial management and innovation, particularly in micro-insurance products.
Looking ahead, Nziradzemhuka identified oil and gas, mining, agriculture and ICT as sectors offering strong growth potential for the insurance industry.
“There are significant opportunities in Africa associated with various developments in the numerous economic blocks. This opens doors to new risks that are associated with modern trade frameworks and also infrastructure projects that are underway,” he said.
“New and broadening sectors such as oil and gas, mining, agriculture and ICT have strong potential for the insurance sector.
“Riding on strong balance sheets and the right quality of capital, we believe competitiveness will lie in globally-accepted credit ratings and the quality thereof.”
According to ZimRe, the successful implementation of the EI capital raise would strengthen regional operations with competitive capital and position the group to tap into Africa’s low insurance penetration levels by expanding further north.
The group said it was committed to maintaining and growing foreign investments that leverage regional integration and trade policies, while enhancing resilience to global economic shocks and mitigating currency risk exposure.
