THE world’s second-largest insurance broker by market value, AON Plc has announced it is exiting Zimbabwe to comply with the country’s indigenisation laws. Aon Zimbabwe has operated in the country since 1967, making it the global brokerage’s oldest unit in the sub region, but the company said Wednesday it was selling its entire shareholding in the local unit.
— Online
“Following the suspension of Aon Zimbabwe’s licence . . . and in order for the business to comply with all local legislation, Aon Plc has made a decision to sell its entire shareholding to a local entity,” explains Anton Roux, CEO of Aon South Africa and Sub-Sahara Africa.
“We have reached final agreement with the local entity . . . which has also agreed to set up an employee share trust simultaneous to the sale process.
“Subject to the necessary regulatory approvals for the sale, we will jointly make an announcement with regard to the identity of the shareholder and the structure of the new business.”
Zimbabwe’s empowerment laws require foreign companies operating in the country to transfer majority shareholding (at least 51%) to locals.
The policy, driven by President Robert Mugabe, has, however, divided the country’s coalition government and become a key campaign issue ahead of elections expected later this year.
Mugabe insists the programme is needed to address historical imbalances in the control of the country’s economy but Prime Minister Morgan Tsvangirai’s MDC-T party says the approach taken by Zanu PF scares away much-needed foreign investment.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Meanwhile, the terms of the Aon deal were not disclosed but Roux said the company would retain a presence in the country to give the entity technical support.
“Aon will however retain a presence in Zimbabwe through an exclusive correspondent arrangement with the new entity to ensure that our global clients that are domiciled in Zimbabwe will continue to get the service they are accustomed to,” he said.
“Aon will also assist the new entity with technical expertise and resources to ensure that the business will continue and that both the local and global client risks are addressed with best practice.”
