Staff Reporter
Zimbabwe’s banking and finance sectors are spearheading the country’s mergers and acquisitions (M&A) activity, with transactions aimed at expanding operations and boosting growth.
According to a list compiled by the Competition and Tariff Commission (CTC), the financial sector has been the most active, submitting three M&A proposals since January. The manufacturing sector follows with two, while the mining, real estate, construction, and motor vehicle repair industries have each submitted one proposal for regulatory consideration.
Speaking at a strategic finance meeting, yesterday, CTC spokesperson Mr Tatenda Zengeni commented on the banking sector’s dominance in the M&A space, attributing it to a growing appetite for expansion.
“The banking sector is notably leading in these transactions, and once the decisions are finalized, we will provide more details. It is clear that there is substantial interest, and we are progressing through the decision-making process. Once complete, public announcements will follow.
“Among the major players, Zimbabwe Stock Exchange-listed CBZ Holdings has issued a cautionary statement regarding its potential acquisition of a complementary business. This signals a broader trend of financial institutions positioning themselves to grow and adapt to an evolving economic landscape,” he said.
Economist Dr Zack Murerwa emphasized the need for regulatory authorities to assess the long-term benefits of these transactions, ensuring they contribute positively to Zimbabwe’s economic growth.
“These mergers and acquisitions are crucial for mobilizing resources within key sectors of the economy. However, regulatory bodies must carefully evaluate whether these transactions promote growth and socio-economic development, which is the ultimate goal of any such endeavor
“I urge authorities to focus on transactions that would drive sustainable development rather than ones that could hinder progress,” Dr Murerwa explained.
The rise in M&A activity comes as Zimbabwe continues to push forward with its domestic resource mobilization strategy. With the country facing a significant debt burden that limits access to long-term financing from international financial institutions, local firms are turning to mergers and acquisitions as a means of enhancing growth and ensuring competitiveness.
These developments highlight the critical role of the financial sector in shaping Zimbabwe’s economic future, as local firms seek to strengthen their foothold in a challenging global economic environment.
As decisions from the CTC are awaited, the impact of these mergers will soon become clearer, with the potential to reshape Zimbabwe’s economic landscape.
