OM eyes renewable energy opportunities

ZIMBABWE’s largest financial services group, Old Mutual Zimbabwe (Old Mutual), is strategically pivoting its investments towards sustainable projects with a focus on positive social impact.

At the recent 2024 Top Companies Survey Awards, Old Mutual chief executive Samuel Matsekete emphasized the urgency of addressing the disruptions caused by adverse climatic conditions, particularly in the energy sector.
Matsekete highlighted the growing importance of environmental, social, and governance (ESG) practices in attracting modern investors.
“In the eyes of the modern investor, a company that upholds and performs well on sustainability is a good investment,” he stated.

Samuel Matsekete, Old Mutual chief executive 

“At Old Mutual Zimbabwe, we seek to uphold sustainability principles and practices in the way we do business or invest. We encourage our investee entities to embed EESG practices in their business models and processes,”
“We also now include ESG as a parameter we evaluate in selecting investment projects.
We are also allocating direct resources to certain assets compatible with the thrust for sustainability.
For example, our investments in alternative investments include significant allocation to renewable energy whilst financing to the agriculture sector incorporates any interventions to mitigate the effects of adverse climate,” he said.
This commitment to sustainability is reflected in Old Mutual’s approach to business and investment practices, where the company actively encourages its investee entities to implement ESG principles in their operations.
In a significant move, Old Mutual has begun incorporating these practices into its investment evaluation criteria.
The company allocated a substantial US$15,08 million to renewable energy projects for the fiscal year ending December 31, 2023. This allocation represents 58 percent of the group’s total investment portfolio of US$26 million, underscoring Old Mutual’s commitment to fostering sustainable development and combating climate change in Zimbabwe.
Among the notable projects in the pipeline are the Great Zimbabwe Hydropower Plant, Kupinga Renewable Energy, Solgas, Richaw, and Centragrid.
A landmark achievement includes the commissioning of the SolGas Energy 5MW solar plant in Cross Mabale, Hwange District, in collaboration with partner SolGas. This project marks a significant milestone for Old Mutual’s renewable energy ambitions.
Matsekete further emphasized the broader trend among institutional investors worldwide, including those in Zimbabwe, who are realigning their portfolios to prioritize ESG performance.
“Companies that consider their societal impact are well-positioned for long-term success,” he said.
As Old Mutual continues to integrate sustainability into its investment strategies, it is clear that the financial services group is not just responding to market trends but is also taking proactive steps to ensure a resilient and sustainable future for Zimbabwe’s economy.
With ongoing investments in renewable energy, Old Mutual is setting a precedent for corporate responsibility while addressing the pressing challenges posed by climate change.
The Top Companies Survey Awards which the financial services group sponsors are also a manifestation of its commitment to honour best performing companies in the country.
This year’s theme, “sustainable investing for social impact” was in line with the group’s vision.
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