HARARE,– South African financial group Sanlam has acquired a 40 percent shareholding in Zimnat in a deal worth $11,5 million which will see the group rebranding, officials said on Wednesday.
The balance of shareholding is owned by Masawara, a holding for Dandemutande Investments, Joina City and iWayAfrica Zimbabwe among others.
Zimnat will maintain its name, but will incorporate ‘associated with Sanlam’ on its logo.
Sanlam operates in 35 countries in Africa while Zimnat operates four subsidiaries in the country which include general insurance, life assurance, microfinance and asset management.
“Our partnership with Sanlam will give us a regional appeal because Sanlam has operations in most African countries. Companies prefer insurance from a company with international back up and with Sanlam that will be our advantage. This is likely to increase our revenue as a company,” Zimnat chief executive, Mustafa Sachak told journalists on Wednesday.
Sachak added that the partnership will increase Zimnat’s visibility in the market from the current fourth position to be being the lead insurance service provider.
The insurer plans new products that will cater for agriculture businesses, infrastructure development and strengthen its micro finance arm as these sectors are dominating in the market.
“Zimnat will have access to knowledge base from Sanlam as it has world class customer experience, technical knowledge, product development, innovative products and solutions to clients,” said Sachak.