JOHANNESBURG Securities Exchange-listed financial services outfit Old Mutual Limited will continue operating its Zimbabwean unit, Old Mutual Zimbabwe (OMZ), under a ring-fenced structure as the group remains unable to repatriate funds from the country.
Old Mutual holds a 75% stake in OMZ through its subsidiary Old Mutual Zimbabwe Holdco Limited. The remaining shares are held by indigenisation trusts and other investors and a strategic partner.
The challenge of repatriating funds outside Zimbabwe appeared again in the parent company’s annual financial statements for the period ended December 31, 2025.
This comes despite OMZ, through its local subsidiary, Old Mutual Investment Group Zimbabwe (Private) Limited, managing assets under management valued at R22,5 billion as of last year, an increase of 9,22% from the prior year.
“Until such time as the group is able to access capital by way of dividends from the business in Zimbabwe, the group will manage it on a ring fenced basis and exclude its results from adjusted headline earnings,” Old Mutual said in its results for the review period.
Restrictions on repatriation stem from exchange control measures, which limit the transfer of funds offshore.
This is despite a steady improvement in the unit’s financial position. Old Mutual Zimbabwe’s total assets rose to R30,66 billion in 2025, up from R27,61 billion a year earlier. Liabilities also increased to R26,04 billion, from R23,21 billion.
Net assets climbed to R4,62 billion, reflecting a modest but continued strengthening of the balance sheet, underpinned by retained earnings and tight capital management.
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Cash generation was particularly strong. Net cash and cash equivalents increased by R706 million, a jump of nearly 65% year-on-year.
Even so, the group remains unable to repatriate earnings.
Old Mutual said “statutory and regulatory restrictions” imposed by Zimbabwean authorities continue to cap the amount of funds that can be transferred out of the country.
In response to shifting monetary conditions, the group also changed the functional currency of its Zimbabwean operations.
Following the introduction of a new currency, Zimbabwe Gold, in April 2024, the business adopted the United States dollar as its reporting currency from July 1, 2024.
The decision, applied prospectively, reflects the economy’s continued reliance on the US dollar and brought an end to hyperinflation accounting for the unit.
Looking ahead, Old Mutual expects Zimbabwe’s economic outlook to stabilise. The group forecasts gross domestic product growth of 3,2% in 2026, slightly lower than earlier projections, largely due to base effects.
Firm gold prices are expected to support fiscal revenues and foreign currency inflows, while inflation is projected to ease sharply to 5,8% from 25,6% in 2025.
However, Old Mutual cautioned that deeper structural challenges — including sizeable debt arrears — continue to cloud the medium-term outlook.
