November 25, 2024
Zida touts sustainability
THE Zimbabwe Investment and Development Agency (Zida) says local companies should adhere to the environmental, social and governance (ESG) framework to attract investment.
Investors worldwide are increasingly paying attention to ESG matters — non-financial factors — as part of their analysis process to identify material risks and growth opportunities. ESG factors are integrated into decision-making processes for the purpose of promoting responsible and ethical practices.
Zida chief executive, Tafadzwa Chinamo
Speaking during the Top Companies Awards (TCA)hosted by The Financial Gazette and sponsored by financial service giant, Old Mutual Zimbabwe, Zida chief executive, Tafadzwa Chinamo said mining companies that have adopted ESG practises are better positioned to attract investors. He said the firms are also better positioned to comply with regulations and maintain a good reputation with communities and national governments.
“To buttress the importance of the planet, the people and profit-centred innovations in achieving sustainable growth, always adhere to the environmental, social and governance framework to measure the sustainability of your business practises and performance on business risks and opportunities,” Chinamo said, adding “There are no two ways about it — companies that don’t innovate have no future. Sustainable innovation is the bedrock on which modern companies can bring about growth, competitive advantage and increased market share,” Chinamo said.
Leading beverages maker, Delta Corporation, won the 2023 Top Companies Survey award for the second year in a row after being adjudged the best-performing company on the Zimbabwe Stock Exchange (ZSE).
Diversified investment group, Innscor Africa won the first runner-up, while gold producer, Caledonia Mining Corporation was crowned second runner-up.
Mashonaland Holdings won the best tangible investor return award. Nedbank Zimbabwe won the best banking institution, while Standard Chartered Bank came second.
Caledonia also walked away with the Special Mention Award, which recognises outstanding achievements or contributions to a current topical issue.
The model used to honour the top companies on the ZSE and Victoria Falls Stock Exchange (VFEX) places emphasis on consistent and positive financial performance, maintaining a healthy financial position and superior total returns to investors or shareholders.
The Financial Gazette managing director Lewis Chikurunhe
The judging criteria also kept an eagle eye on the companies’ corporate governance practices, including providing adequate disclosure and building sustainable partnerships with clients, communities, the government and other strategic partners.
The insurance industry category criteria placed emphasis on assessing the insurer’s loss ratio, expense ratio, commission ratio and ceding ratio. The model also rated the companies’ desire to reward insurers who cede risk to reinsurers optimally, underwrite quality business in terms of claims risk, manage expenses efficiently, acquire business at optimal commissions and generate profit from every amount of the premium written. Quality Insurance was crowned the Top Short-Term Insurer. The top Life Assurer was awarded to Ecosure, while the Top Short-Term reinsurer was won by ZB Reinsurance. FBC Reinsurance won the Top Life Reinsurance.
This year’s awards mark the 10th anniversary of The Financial Gazette and Old Mutual partnership hosting the Top Companies Survey awards.
Speaking at the same event, Old Mutual group chief executive Samuel Matsekete said sustainable innovation is about fostering a culture of continuous improvement, embracing responsible business practices and nurturing long-term relationships.
“Innovation is about challenging the status quo, exploring innovative ideas and pushing the boundaries of what is possible. It is about solving the ever-changing needs of people and societies. It is also about creating value and doing so the right way to improve lives and amplify the common good. When businesses innovate to create positive impacts, they stay ahead of the curve, maintain a competitive edge and grow sustainably in the future,” he said.
Old Mutual group chief executive Samuel Matsekete
Matsekete said one of the innovative solutions that Old Mutual launched in May this year for the benefit of the communities they serve was Omari.
“This is a fintech proposition that provides convenient access to a wide range of financial solutions. It enables our customers to manage their investments, access insurance coverage and make secure transactions on one platform from their mobile devices. Through Omari, we are empowering individuals and businesses to take control of their financial future,” he said.
The Financial Gazette managing director Lewis Chikurunhe said this year’s awards ceremony sought to recognise astute leaders that have managed to harness their organisational capabilities to achieve sustainable growth, anchored on innovation.
“Admittedly, 2023 has not been an easy year for business and commerce as a result of local, regional and global headwinds that characterised the greater part of the year,” Chikurunhe said.
First launched in 1980 to recognise top-performing companies on the ZSE and the VFEX, the Top Companies Survey has since transformed to become the most authoritative barometer for local and international investors on the performance of companies in the country’s banking, insurance and life assurance sectors.
