The National Social Security Authority (NSSA), the Public Service Pension Fund (PSPF), and the Mutapa Investment Fund (MIF) have consolidated control over approximately 60 percent of CBZ Holdings (CBZ), the largest financial services group in the country.

This maneuver is part of the government’s strategy to fortify its foothold in the banking sector.

The latest developments occur as authorities aim to mitigate risks associated with the company, which is listed on the Zimbabwe Stock Exchange.

Akribos Nominees has already realized a profitable exit after acquiring a 23 percent stake in CBZ back in 2019.

The influx of well-resourced institutional investors is anticipated to enhance the group’s funding capacity and align with the country’s broader development objectives.

According to cconomic analyst Stevenson Dhlamini, “the presence of a financially robust institutional anchor bolsters shareholding stability, fosters market confidence, and improves access to long-term funding.

“Should this be a subscription for new shares, it will also provide fresh capital.”

Dhlamini emphasized that this transaction plays a critical role in improving market liquidity and the stability of CBZ

He further noted the strategic implications of channeling pension savings into a major banking entity, stating it could deepen capital markets and bolster developmental lending.

“This makes the proposed US$600 million infrastructure fund more credible, as institutional investors with long-term liabilities are natural purchasers of infrastructure securities.”

Support for CBZ’s ambition to become the leading financier for infrastructure projects comes from the PSPF.

It also enhances CBZ’s capacity to facilitate public-private partnerships in various sectors, including energy, housing, and road development.

CBZ’s market capitalization has since surged to nearly US$1 billion, with the stock recently hitting a 52-week high.

This followed a remarkable 250 percent rally since the beginning of the year.

The deal is only the latest between CBZ and NSSA.

In 2021 CBZ Holdings Limited executed an agreement to acquire 31,22 percent stake in First Mutual Holdings Limited formerly held by the NSSA.