Old Mutual Returns to Zimbabwe Market After Six-Year Trading Freeze

The move brings an end to a suspension that began in June 2020, when trading in Old Mutual shares on the ZSE was halted following concerns around Zimbabwe's exchange-rate environment and the use of the company's dual listings to derive an implied exchange rate.

Old Mutual's shares will now trade on the VFEX, subject to the relevant regulatory processes. The dollar-denominated exchange is seen as offering investors lower currency exposure compared with the Zimbabwean market.

What does the move mean for investors?

The return is significant for Zimbabwean shareholders who have been unable to actively trade Old Mutual shares on a local exchange since 2020.

Reports indicate that more than 30,000 Zimbabwean shareholders were affected by the prolonged suspension, leaving investors unable to buy or sell the shares locally during the period.

The migration to the VFEX is expected to restore trading and liquidity in Old Mutual's shares in Zimbabwe, giving shareholders greater ability to manage their investments.

Old Mutual has maintained its presence in Zimbabwe for almost a century, with its regional operations dating back to 1927. The group has also expanded its digital financial services offering in the country through O'mari, which provides services including mobile money, digital lending, payments and other financial products.

A boost for Zimbabwe's capital market?

Old Mutual's return is also being viewed as potentially important for Zimbabwe's capital markets.

The VFEX was established as a US dollar-based exchange designed to attract investment and provide a market environment with reduced local currency risk.

Old Mutual's migration follows the return of Seed Co to Zimbabwe's capital markets through a VFEX listing, while PPC remains the only one of the three companies suspended in 2020 that has yet to resume trading on a Zimbabwean exchange.

For investors, the development represents more than the return of one company's shares. It also provides an indication of how Zimbabwe is attempting to rebuild confidence in its capital markets and create an environment where major companies can continue to attract investment.

Old Mutual's return therefore marks an important moment for both the company and Zimbabwean investors who have waited years for the ability to trade the shares locally again.