“Diversification across sectors and jurisdictions is key”

Marjorie Mayida, Managing Director at Old Mutual Investment Group of Zimbabwe

Trade between Mauritius and Zimbabwe could extend well beyond the exchange of goods, with financial services and investment playing a greater role in bilateral ties. Speaking against the backdrop of the Mauritius–Zimbabwe Business Forum, organised in August by the Zimbabwe National Chamber of Commerce (ZNCC) and the Mauritius Chamber of Commerce and Industry (MCCI), Marjorie Mayida argues that Mauritius could provide a platform for Zimbabwean capital seeking access to international markets. In turn, she sees opportunities for Mauritian investors in Zimbabwe’s mining, tourism, real estate and renewable energy sectors, alongside scope for private equity, infrastructure financing and skills transfer.

What specific investment opportunities do you see for Zimbabwean and Mauritian investors to collaborate, particularly in sectors where both countries have complementary strengths?

I see two sets of opportunities. The first one is around collaborating in financial solutions. For us, the Old Mutual Investment Group, we invest in all sectors of the economy. We are engaged in property development, renewable energy infrastructure, listed investments and even the private equity space.

We also have a commercial bank. So, there are opportunities around lines of credit, trade finance and normal banking.

The first opportunity, therefore, is to create financial solutions for Zimbabwean investors to invest offshore in or via Mauritius, and the other way around, positioning Mauritius as a conduit for global investment into Zimbabwe.

“I strongly believe Zimbabwe can leverage these factors by channelling capital via Mauritius”

The second opportunity is skill transfer. Zimbabwe’s capital markets are not as deep as Mauritius which has a well-developed international financial service centres in the region. Zimbabwe’s international financial services sector is only a few months old.

There is an opportunity for investment managers and financial services players in
Zimbabwe to learn from Mauritius, particularly in structuring products, investment vehicles and financial solutions.

So, I would say those are the two sets of opportunities I see.

Mauritius is positioning itself as a gateway to Africa. From Old Mutual Investment Group’s perspective, how could Mauritius serve as a platform for Zimbabwean capital and businesses seeking to access regional and international markets?

Yes, indeed, Mauritius is a financial hub in Africa, as I said earlier, because of the depth of its market and the fact that its regulatory environment and framework are quite advanced.

There are a number of advantages in Mauritius, such as its network of tax treaties and investor protection framework. These factors enable Mauritius to attract capital from global markets.

I strongly believe Zimbabwe can leverage these factors by channelling capital via Mauritius into Zimbabwe, or, even setting up investment vehicles here by taking advantage of the regulatory environment in order to deploy capital.

What makes Mauritius an attractive destination for Zimbabwean institutional investors?

I think that Mauritius is already an attractive destination. I do not know why we have not explored this channel before. The operating environment here is favourable and Zimbabwe itself is undergoing significant liberalisation of its investment and exchange-control regime.

In the past, regulators did not allow individual investors to invest offshore. Now, we are seeing a lot of changes around the regulatory space in Zimbabwe where pension funds are allowed to invest 15% of their portfolios offshore. Individuals are also allowed to invest USD 50,000 per annum without exchange-control requirements.

So, I think that with that liberalisation in our country, Mauritius automatically becomes a destination of choice because of its favourable investment and regulatory environment.

Beyond trade, what practical mechanisms like joint ventures, private equity, investment funds, or co-investment platforms could emerge from this mission?

From an investment perspective, I have already talked to a number of Mauritian companies including asset managers, banks and management companies engaged in financial structuring.

One area of particular interest is private equity funds, including its financial structuring. Diaspora bonds and lines of credit are also on our list.

I have spoken to one local bank and I intend to link it with our bank in Zimbabwe in order to explore lines of credit and trade finance as well.

These are the kinds of structures I believe can emerge from this engagement.

In practical terms, what will the Memorandum of Understanding (MOU) signed between Mauritius and Zimbabwe during the Mauritius- Zimbabwe Investment and Trade Mission on August 19 change for Mauritian and Zimbabwean companies seeking to do business in each other’s markets?

I think it is an excellent initiative. It will raise awareness around what opportunities lie outside of Zimbabwe from a Zimbabwean perspective.

We also have the International Financial Services Centre in Zimbabwe, which is quite young. As an investment manager, I have already gained valuable information about what I can offer investors through the centre, including investors from outside Zimbabwe.

The MOU is therefore opening up the doors of multiple opportunities for both countries.

I am more than confident that we are going to progress towards signing some deals. The MOU also creates a platform for engaging with other jurisdictions and opening similar channels for collaboration, as we are actually doing with Mauritius.

How will you ensure that this MOU produces tangible outcomes rather than remaining simply an institutional agreement?

The MOU, like you said, is an institutional agreement. But we, as market players in Zimbabwe, have to make things happen. So, I must take it upon myself to follow through on all the engagements I have had. The ZNCC and MCCI will not do the work for us.

So, I have got a target and we want to create products here which we can offer to our clients.

Ultimately, I think, in terms of execution, it is less about those people who signed the MOU but more about us to making sure that the opportunities translate into actual business.

Which Zimbabwean products or services have the greatest potential to penetrate the Mauritian market?

Zimbabwe has got lots of opportunities across a wide range of sectors. From the engagements we had during the trade forum, I understand from the authorities in Mauritius that they are quite interested in the mining sector.

There are also opportunities in the tourism sector. Mauritius is a major tourist destination, but Zimbabwe equally has good tourism attractions, presenting opportunities for Mauritian investors to explore.

From where I sit, real estate is another significant opportunity.

Energy is also particularly important. Zimbabwe currently has a power deficit. We are producing about 1,500 megawatts, while our national requirement is 2,200 megawatts.

Old Mutual Investment Group is already a major player as an independent power producer. We are doing solar and hydropower projects, and I think there is an opportunity for Mauritian companies to come over to Zimbabwe to co- invest with investors like ourselves.

How important are regional frameworks such as SADC, COMESA and the AfCFTA in turning bilateral relationships like this one into actual business?

They are extremely important because they accelerate regional integration, promote intra- regional trade and create larger markets and incentives for businesses to invest across jurisdictions.

As far as Old Mutual Investment Group is concerned, we are an asset management
company. We manage retail, corporate, and pension fund business. We are just trying to harness savings for investment. So, for you to attract the savings, you need to have products that appeal to investors.

For investment products, diversification is key. Diversification across sectors and also diversification across jurisdictions. For us, Mauritius is an ideal partner for diversifying our clients’ investments outside Zimbabwe.

That is why this trade mission then becomes very critical. This is not simply about signing agreements; it is about creating the investment structures and products that can connect capital, businesses and opportunities across the two markets.