Staff Writer
FIRST Mutual Holdings Limited (FMHL) says it is eyeing Zimbabwe’s informal sector as a key growth frontier, with the group unveiling plans to take its products directly to small businesses and entrepreneurs who have traditionally been excluded from mainstream financial services.
Speaking on the sidelines of the group’s annual general meeting recently, FMHL chief executive officer Douglas Hoto said the informal sector, which has emerged as the backbone of the economy, offers immense opportunities for financial services providers willing to rethink their distribution models.
“We want to tap into the informal sector. That’s where the growth is. People say they can’t see where the money is, but you can see new cars, new houses, solar panels – all being driven by the informal economy,” Hoto said.
He explained that the group’s strategy is anchored on accessibility and convenience, moving away from expecting customers to visit traditional offices.
“The people in the informal sector don’t come to you because they can’t leave their business for a minute to do transactions. You must go to them. That is our approach,” he added.
While expanding in the informal economy is the immediate focus, FMHL is also pursuing a regional growth strategy across Africa.
The group, which already has operations in Malawi and Mozambique, says it is exploring opportunities in Tanzania and Rwanda, building on its existing foothold in Botswana.
Hoto said the expansion model is phased, starting with reinsurance services offerings before rolling out full product suites in each market.
On the outlook for the year, the FMHL boss expressed optimism that 2025 performance will surpass last year’s, buoyed by the group’s dual thrust of consolidating formal sector presence while capturing the rising informal market.
