Zimbabwe Expects More Company Mergers In 2019
Companies that boast of significant balance sheets are expected to make more strides in the acquisition and merger scene of Zimbabwe in the current financial year. Thanks to the Southern African country’s recent lower costs, more mergers are expected to blow into its business ecosystem.
Per a report, Competition and Tariff Commission (CTC) Director , Ellen Ruparanganda, forecast more firm mergers this year, after completing a total of 20 mergers and takeovers in 2018.
According to her, the Commission’s – who approved 10 mergers and acquisitions in the first six months of 2017 hopes that more merger cases will suffice in the wake of firms focusing more on the potential of synergies, while those who have great balance sheets are well-poised to consider and exercise available growth options through acquisitions when the costs are lower.
Ruparanganda said that most of the mergers are expected to take place in the manufacturing sector since of the firms in the said space are still operating below capacity. While that is agreeable, mergers and acquisitions are also envisaged to come from the insurance sector of the country.
By way of Rupranganda’s revelation, we are aware that the Insurance and Pensions Commission (IPEC) is targeting insurance penetration to reach 7 percent by the year 2022 compared to the current 4.7 percent. Therefore, the growth of the sector can see more merger and acquisition activities in as much as players are looking to develop products that will fit into the current trends of the market.
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According to her, there is a growth element in the financial technology in Zimbabwe, which makes ICT and finance sectors more ready than ever to accommodate a host of merger cases.
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