In an ever-changing, competitive environment in which providers of goods and services have to constantly vie for the attention of clued-up and tech-savvy consumers, rebranding or refreshing one’s public image or brand ceases to be a luxury.
OMEN MUZA
Instead, it becomes a strategic imperative, without which, brands eventually get tired and give up the ghost of popular appeal, leading to loss of market share. Even strategies that appear well-thought-out today eventually get overtaken by events due to strategic drift, making some sort of realignment necessary.
This instalment reviews such activities, which some financial sector players embarked on in the first quarter of 2017 in order to stay relevant. Notably, a third of the activity during the quarter was driven by acquisitive moves, while 62% were rebranding initiatives and 38% were strategic realignment manoeuvres.
January 2017
Collarhedge Finance (Private) Limited — rebranding
Pursuant to its licensing by the Reserve Bank of Zimbabwe as a deposit-taking microfinance institution — authorising the institution to conduct deposit-taking microfinance business in terms of the Microfinance Act [Chapter 24:29] and offer a broad range of financial services — Collarhedge Finance (Private) Limited changed its name to Success Micro-finance Bank Limited. The institution also changed its logo and opened a new branch at Shop 8 and 10 Karigamombe Arcade in Harare.
MicroKing Finance (Pvt) Ltd — rebranding
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Microcred Zimbabwe, formerly MicroKing Finance (Pvt) Limited, was officially rebranded on January 10, 2017 at an event at which Finance and Economic Development minister, Patrick Chinamasa, was the guest of honour. This followed a 70% and 30% shareholding acquisition by Microcred SAS and AfricInvest Financial Sector Limited, respectively, which was concluded on May 23, 2016.
Microcred SAS Africa chief executive officer, Ruben Dieudonne, said the group saw an opportunity in Zimbabwe and acquired shares. “We saw the market opportunity and took it. Every country in Africa has challenges and Zimbabwe does as well. But the market potential here is high when we see market potential against the competitors, I am confident of that potential,” he said.
PTA Bank — rebranding
The Preferential Trade Area (PTA) Bank was rebranded, leading to the launch of the Trade Development Bank (TDB) in Addis Ababa, Ethiopia. The Trade and Development Bank is an African regional development financial institution established in 1985. The bank is a Common Market for Eastern and Southern Africa (Comesa) institution, and membership is open to non-regional countries and institutional shareholders.
February 2017
Standard Chartered Bank — strategic realignment
Standard Chartered Bank Zimbabwe said it was consolidating its property division to create one single external supplier and improve operational efficiencies. “In line with the bank’s global strategy to streamline business operations and improve operational efficiencies, Standard Chartered’s property division is consolidating its multiple real estate service providers to one single external supplier, across all markets. The benefits of such a partnership enables standardisation of processes, efficient governance, and streamlined communication, auditing and reporting,” head of corporate affairs, brand and marketing, Lillian Hapanyengwi said.
She said, in Zimbabwe, the realignment process was still in its early stages, adding the bank looked forward to enhanced efficiencies and delivery within its property division, with minimal impact on staff.
Ecobank Asset Management Company (Private) Limited — rebranding
Akribos Wealth managers issued a notice to the public advising of its change of name.
“Members of the investing public are hereby advised that following regulatory approval by the Securities and Exchange Commission of Zimbabwe of the transfer of Ecobank Asset Management Company (Private) Limited to Akribos Capital Incorporated (Private) Limited, we are rebranding and changing our name from Ecobank Asset Management Company (Private) Limited to Akribos Wealth Managers (Private) Limited,” said the company in the notice published on February 9, 2017.
IDBZ — strategic realignment
State–owned Infrastructure Development Bank of Zimbabwe (IDBZ) abandoned commercial banking to focus on the infrastructure development business. Chinamasa said the bank, which had adopted a commercial banking model to ensure that it survived a harsh economic environment, had returned to its original core mandate, which is medium to long-term infrastructure development in key sectors of energy, transport, water and sanitation, information communication technology and housing.
March 2017 Zimnat — rebranding
Zimnat, which has interests in insurance, life assurance, asset management and microfinance officially rebranded all its subsidiaries to reflect its partnership with pan-African shareholder, Sanlam Group, which in 2015 acquired a 40% stake in Zimnat at a value of $11, 6 million through its subsidiary Sanlam Emerging Markets (SEM).
Speaking on the side lines of the official launch of the new brand on March 29, 2017 in Harare, Zimnat group chief executive officer, Mustafa Sachak said Sanlam would give assurance to clients of their capabilities.
“If you look at it, it is a new fresh look that signifies a partnership with Sanlam. We want to be in the top two and that is also Sanlam’s position that wherever they go they want to be the dominant company or in the top three.
Zimnat is associated with one of the largest groups, so when they (Zimnat clients) want to insure their life or want their money looked after by an asset management firm, they know we will be safe,” he said. For its clients, Zimnat said the partnership meant “products of international standards, excellent technical support, superior customer experience, security and peace of mind”.
National Social Security Authority (NSSA) — strategic realignment
The National Social Security Authority (NSSA) said it was working on a strategy for its investments in the banking sector, which might see it divesting from some entities or consolidating others. Board chairperson, Robin Vela, told the media on March 29, 2016 that the strategy was still work in progress, but “all I can say to you is certainly we do not believe that our holding will be the same at the end of the year. There is a strategy that we are trying to roll out … which talks to say: Is it appropriate for NSSA to have 10 banks, 10 insurance companies?
“As a shareholder, we are the ones who are suffering because we have got our capital competing against each other and we have got to change that. We are saying we shouldn’t have invested in 10 banks, 10 insurance companies. We want to try and streamline our involvement in some of these companies.”
Omen N. Muza is the founder and editor of the MFSB. You can view his LinkedIn profile at zw.linkedin.com/pub/omen-n-muza/30/641/3b8 or initiate contact on [email protected].
