FINANCIAL services firm Old Mutual Zimbabwe has set aside 20% of its total loan book to the agriculture sector as part of a strategy to embed sustainability across its operations.
The group saw a 31% growth in its loan book in the first half of the year to US$255,3 million from the end of last year.
Driving this growth was an increase in the group’s foreign currency lending book to key sectors of the economy.
During an analyst briefing of its half-year results for the period ended June 30, 2025, on Tuesday, Old Mutual Zimbabwe group chief executive officer Sam Matsekete said the company wanted sustainability woven into the fabric of doing business.
“We believe that sustainability must be a way of doing business. While we chase benefits beyond profits, we must always ask how we ensure those benefits are sustained into the future," he said.
"Twenty percent of our total loan book is also going into supporting agriculture, and within agriculture, food security. So, these are some of the areas we continue to focus on to ensure that we are also playing a part in our humble ways to support the sustainability outcomes that we would like to see in the wider economy.”
The investment into agriculture comes as this year experienced La Nina conditions of improved rainfall.
Consequently, crop output for the current season is expected to be significantly higher than last year, when the country faced a drought.
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“The projected rebound in GDP [gross domestic product] growth for 2025 is primarily underpinned by a strong agricultural season in 2024/2025 and elevated gold prices, which are expected to drive increased output and export earnings,” Matsekete said.
He said alternative investments deployments of US$13 million were also made into food manufacturing, agriculture, renewable energy and construction sectors.
The group kept non-performing loans at low levels of 0,9% as the business continued to actively manage loan book quality.
Matsekete said decisions on the products designed for customers were made, with a strong focus on balancing growth, resilience and environmental responsibility.
In that regard, within its lending portfolio, 837 small and medium enterprises (SMEs) are being supported.
Through prioritising SMEs with sustainability-conscious models, the institution believed it was helping cultivate enterprises that would thrive long into the future, Matsekete said.
He added that the group had also anchored its sustainability strategy in responsible investments, with renewable energy at the forefront.
The group’s balance sheet ended the period under review strongly as the firm recorded a 6% increase in its total assets to nearly US$1,57 billion from the end of 2024.
Matsekete said the group was also contributing to building resilience against climate change through training and strategic industry collaboration in a weather index insurance pool — supporting farmers to safeguard their livelihoods against climate risks.
