A CHINESE-OWNED company, Makomo Engineering (Makomo), has emerged as the biggest shareholder — at 21,4 percent — in NMBZ Holdings (NMBZH) amid talk of a possible takeover of the listed financial institution.
While efforts to secure comment from the group’s principal and managing director Jin Liangming were fruitless, as he had not responded to questions sent to him late last week ― as per his request ― the bank’s chief executive Gerald Gore yesterday confirmed the development.
“They have been on our shareholders’s list since 15 years ago and they have just been increasing their stake over time,” he told this publication by text message.
Even, though, Makomo’s website lists the financial services, construction and energy sectors as some of its main focus areas, it was “not clear what Jin’s motive and long-term plan or objective was after his aggressive gorging on NMBZH’s shares”, which have seen him “leapfrog” African Century Financial Investments (ACFI) and development fund Arise B.V.
However, people familiar with the development said the naturalised Zimbabwean was “aiming to take over the listed financial group and turn it into a Sino-Zimbabwe bank after on-going talks with other minorities to increase his stake”.
“Jin’s portfolio is quite an interesting mix (of assets), as Makomo is essentially a construction group whose signature projects include Kunzvi and Mtshabezi dams, but it has been impressive enough to see how the guy has quietly accumulated NMBZH stock from just under five percent in 2023 to 10 percent-plus last year and now topping the charts,” they said, adding the “acquisition might have been motivated by the counter’s discount trade and banking subsidiary’s clean book”.
“What this shows is that he has either a very long-term strategy underpinned by the billion-dollar trade relationship between Harare and Beijing, and motivated by opportunities in this market or it’s a project also driven by geo-political developments and such basic things as the growth of the Chinese community in this country, hence the need for a niche or specialised financial services provider. And with ACFI, and Arise at nearly 19 and 17 percent, it would seem that there is no stopping for a deep-pocketed guy who was part of the pioneering Chinese businesspersons to arrive in Zimbabwe in the mid-2000s,” they said.
But under Zimbabwe Stock Exchange (ZSE) rules, Makomo would have to do more ― by offering “even more premiums” to fellow shareholders or potential sellers ― to reach the 35 percent threshold needed to take full contol of NMBZ after buying out minorities.
With the nearly two decades-old company also into real estate developments in Harare’s northern suburbs and spearheading Kunzvi’s construction, the diversified group is also reportedly part of a consortium to build four major road interchanges in the capital (namely Churchill and Borrowdale, Harare Drive and Borrowdale road, which is now known as Liberation Legacy).
Apart from construction, Makomo is also seeking to further expand its influence in the energy sectors by forging a partnership with one of the country’s leading, and fast-expanding fuel retailers as well as players.
Founded as the National Merchant Bank in 1992 by a group of bankers, including Julius Makoni, James Mushore, Francis Zimuto and Otto Chekeche, the financial group’s stock has risen 23 percent this year ― just as it remains one of the most liquid ― and was trading at nearly ZiG4 per share yesterday.
With a turnover of ZiG321,6 million so far this year, its market capitalisation was ZiG1,6 billion at the close of trade.
Meanwhile, NMBZ has not only proven to be a dynamic and technologically-advanced holding company with financial, real estate and other assets, but offers a “full range of services including business, consumer banking, bancassurance, treasury and international, and microfinance services or solutions” through its commercial subsidiary.
In 2023, NMB Bank expanded its footprint through a partnership with ZimPost to become Zimbabwe’s widest banking network with 100-plus agencies and it has enhanced operational efficiencies by upgrading its core banking system.
As it is, its Xplug Solutions develops artificial intelligence-based digital, blockchain, cloud computing, cybersecurity and data analytics solutions.
The fintech has also established a regional presence for back-up services to banks and businesses in Rwanda, Malawi, Mozambique, Tanzania, Uganda and Zambia.
NMB has not only strived to continue strengthening its market dominance and position by leveraging its “fine legacy”, but the group has raised over US$65 million in foreign lines of credit in 2024 alone “to support Zimbabwe’s productive sectors and demonstrate its commitment, and role in the local economy”. Crucially, the bank group remains profitable and consistently exceeds regulatory capital requirements, thus reflecting its solid financial foundation.
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