NSSA refocuses investment strategy
HARARE, The National Social Security Authority (NSSA) says it is currently implementing a refocus strategy that involves divesture, consolidation, and optimisation of its investments to unlock value for the benefit of its members who include pensioners and contributors.
Arthur Manase, NSSA’s General Manager, in a statement said the authority will be divesting from its 32.55% stake in Turnall and thee Authority’s Board and Principals have granted approval for the transaction.
“… disposal of NSSA’s entire shareholding of 32.55% in Turnall Holdings Limited (“Turnall”) as part of refocusing and optimising the investment portfolio.
As a result, NSSA is inviting interested parties to submit expressions of interest for the 32.55% Turnall stake.
“Proceeds of this disposal are earmarked for strategic foreign currency generating investments. Proposals should be submitted in sealed envelope to NSSA through the General Manager’s Office by 31 January 2021,” he said.
Manase said the optimization of Insurance cluster NSSA has commenced with initiatives to implement phase three of the insurance cluster consolidation strategy which involves reducing its stake in First Mutual Holdings Limited (“FMHL”) totalling 66.22% through offloading up to 31.22% to a strategic partner.
This strategic move according to Manase will see NSSA keep a majority shareholding at 35%, in compliance with Zimbabwe Stock Exchange (“ZSE”) and IPEC requirements, while bringing in a strategic investor with solid financial resources, synergistic, technical, and strategic benefits to catapult First Mutual into a regional insurance powerhouse.
NSSA has been non-compliant since 2012 and now intends to be a responsible corporate entity in line with its new values of transparency, honest and accountability. NSSA also needs to share its investment risk in line with good corporate governance.
Phase one of the insurance cluster consolidation was initiated in 2017 and involved the merging of short-term insurer, NicozDiamond into FMHL through a disposal of NSSA’s stake in NicozDiamond in return for shares in FMHL. The transaction helped strengthen FMHL’s short term insurance business and solidify its market standing as one of the leading insurers in the country.
The second phase, which was implemented late 2020, saw NSSA support the consolidation of Zimre Holdings Limited (“ZHL”)’s strategic business units – Fidelity and ZPI – through the disposal of NSSA’s shareholdings in Fidelity Life and ZPI in a share swap deal with ZHL. This leaves NSSA’s insurance sector investments centred around FML and ZHL with vital cross linkages.
Manase said given the solid financial position of FMHL which has benefited from NSSA’s support over the years, NSSA wishes to execute the final phase of its consolidation and refocus strategy through bringing in strategic partners capable of helping FMHL in its next phase of growth.
“While NSSA’s support has helped FMHL to be where it is today, the strategic shareholder is expected to unlock further value through better technical and financial resources. Phase three will see NSSA reduce its shareholding to a maximum of 35% through the disposal of shares to a strategic shareholder.”
The Authority hereby invites interested parties to submit expressions of interest for the 31.22% FMHL stake. Proposals should be submitted in sealed envelope to NSSA through the General Manager’s Office by 31 January 2021.
Consolidation of Banking cluster Following the execution of the divesture from First Capital Bank (formerly Barclays) and ZBFH as the first phase of the banking sector consolidation strategy, NSSA wishes to implement the second phase of its consolidation strategy that involves creating a strategic alliance for its investment in the National Building Society (“NBS”).
Having been in operation for five years, the Society has managed to establish itself as a significant player in the housing space. NSSA believes it is time to engage a strategic partner to broaden NBS’ product offering and enhance its capacity to deliver on affordable housing. NBS is a wholly owned subsidiary of NSSA.
The Authority hereby invites interested parties to make proposals on the strategic alliance involving NBS. Proposals should be submitted in sealed envelope to NSSA through the General Manager’s Office by 31 January 2021.
Strategic thrust The new NSSA has a strategic thrust, which involves rebranding and restructuring processes, among others. Proceeds from the disposals will be allocated to impact investments and offshore investments. These investments will help stimulate economic activity, generate foreign currency, and create jobs for the benefit of all Zimbabweans.