Wakanda News Details

Nssa mulls fresh Afreximbank move. . .… Africa Reinsurance Corporation is next in line

THE National Social Security Authority (Nssa) says it plans to scale up it’s shareholding in the pan African development financial institution, Africa Import Export Bank (Afreximbank) by deploying funds generated when it hived off its shareholding in ZB Financial Holdings Limited (ZBFHL). BY MELODY CHIKONO In 2017, Nssa splurged US$20 million for a stake in Afreximbank, as part of a broad strategy that is meant to bolster the fund’s balance sheet through diversifying investments. A Nssa executive told NewsDay Business last week that the fresh investment into Afreximbank formed part for the State-run pay-as-you-go fund’s ambition to continue unlocking value for thousands of pensioners with savings under its stewardship. The authority recently offloaded its 37,79% stake in ZBFHL where it pocketed US$ 11,46 million in the deal. It was not clear if the entire package would be invested in Afreximbank. But the fund is also mulling to expand its pan-African holdings with an investment in the Lagos headquartered Africa Reinsurance Corporation (Africa Re). Africa Re is one of the region’s biggest reinsurers with a footprint in 41 Africa countries through approximately 107 insurance and reinsurance companies, which was founded on February 24 1976 in Yaounde, Cameroon, making it Africa's first continental reinsurer. It says it is continually combing through the markets to find the right assets to invest in. Nssa communications manager Tendai Mutseyekwa said the authority had pocketed US$1,18 million in dividends out of its Afreximbank investment and was determined to make fresh inroads into one of the region’s most influential financial institutions. “For our offshore investments, we are currently invested in Afreximbank, Quilter and Nedbank, which are both offshoots of Old Mutual,” Mutseyekwa told this paper. Quilter Plc, formerly known as Old Mutual Wealth Management Limited, is a financial services company formed to take over the United Kingdom wealth management business of Old Mutual Plc, after its separation of business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. “With these proceeds we are looking at enhancing our investments in Afreximbank because of the dividend and then also look at other equity investments. But mainly we want to shore up our investments with Afreximbank. We are actually trying to unlock value for the benefit of the scheme,” he said. Generally, Nssa’s investment portfolio is valued at $30,48 billion. It is spread across a wide spectrum of asset classes and industries including equities, properties, offshore investments and fixed income. These include investments in equities on the Zimbabwe Stock Exchange valued at $19,1 billion, investments in shares of unlisted companies valued at $149 million and foreign investments valued at $1,9 billion. The authority’s fixed income is valued at $770 million. Nssa received more than $60 million in dividends from companies it invested in during the first half of this year. Follow Melody on Twitter @melodychikono

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