South Africa’s Alexander Forbes says it has received regulatory approvals to complete its acquisition of African Actuarial Consultants (AAC), Zimbabwe’s largest independent actuarial firm.
The deal, which was initially announced in June last year, gives the South African firm a foothold into the local market which it had exited in 2015 as the economy tanked but believes has significant upside growth potential.
“While it is early days, we (are) optimistic about the future of the country based on the various initiatives that the government is seeking to undertake to attract both domestic and foreign investment. A sustainable growth path is crucial to the success of any country and the financial well-being and security of its people. There are grounds for optimism in Zimbabwe,” said Alexander Forbes chief executive, Andrew Darfoor in a statement.
AAC falls under Alexander Forbes’ Emerging Markets Division, which already has market leading businesses in Botswana, Namibia, Uganda and Nigeria. It also has business interests in Europe and the Middle East.
Alexander Forbes has previously operated in Zimbabwe, but was rebranded to Willis Faber Dumas and Roland (WFDR) Risk Services in 2015 when ZB Holdings sold off its 40 percent shareholdings in the firm.
AAC is led by chief executive Tinashe Mashoko who said the firm has ambition to become one of the leading actuarial and consulting companies in broader sub-Saharan Africa.
“There are significant benefits from being part of Alexander Forbes with whom we share their ambition to grow a distinctly pan-African financial services group. We have aspirations to grow in the region and their acquisition of a significant stake in AAC aligns our regional ambition with that of Alexander Forbes,” said Mashoko.
AAC, which started operating in 1993 as unit of First Mutual Holdings, was in 2016 sold off to Mashoko’s Frankmash Enterprises. Darfoor said the terms of the acquisition were confidential.