SOUTH African financial services group, Old Mutual Limited (OML), has revealed that it is still struggling to repatriate dividends from its local unit Old Mutual Zimbabwe (OMZ), amid the subsidiary’s continued growth and expansion.
In its annual report for the period ended December 31, 2024, released in March, OMZ disclosed that it is still unable to remit US$32,1 million in dividends to its parent company.
This amount formed part of a wider US$83,4 million owed to related parties under the Reserve Bank of Zimbabwe’s blocked funds framework.
OML has previously revealed that Reserve Bank of Zimbabwe statutory and regulatory restrictions, imposed by the Zimbabwean government, restricted the amount of funds that can be transferred out of Zimbabwe to the group.
However, the firm revealed that non-controlling interests do not have any ability to restrict the cash flows to the group.
“Investors are reminded that we exclude the profits of our Zimbabwean business from adjusted headline earnings due to continued restrictions on accessing capital by way of dividends,” OML said in a preliminary trading update for the six months ended June 30, 2024.
“The reduction in IFRS (International Financial Reporting Standards) profit and headline earnings was driven by an approximately R2,2 billion decrease in the Zimbabwe profits as we implemented a change in functional currency from Zimbabwe Gold to the United States dollar from July 1, 2024.”
OML said while this resulted in lower IFRS earnings to the group, it had a limited impact on net asset value due to lower currency translation losses reflected in equity.
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“This decrease in IFRS profits and headline earnings does not have any impact on adjusted headline earnings,” OML said.
Earlier this year, OMZ revealed that its Omari platform, the firm’s fintech arm, had grown 4 784% since its launch and that the group was now contributing 43 megawatts to the national grid from its investment into renewables.
The firm also implemented a hedging strategy of linking some of its assets to liabilities to hedge against the Zimbabwe Gold’s (ZiG) volatility.
This hedging strategy meant OMZ is using its greenback assets to balance its debts exposed to the ZiG, thus, if the currency value shifts, gains, or depreciates, the assets and liabilities offset each other.
Investments into listed equities on the Zimbabwe Stock Exchange generated returns of 118% last year compared to 982% reported in 2023.
Such moves have boosted OMZ profitability and yet OML is still struggling to repatriate dividends.
“Investors are advised that Old Mutual is currently in the process of finalising its interim results for the six months ended June 30, 2025, which will be released on the Stock Exchange News Service of the JSE [Johannesburg Stock Exchange] Limited on Wednesday September 10, 2025,” OML said.
The report is expected to reveal OMZ’s contribution to the parent company amid these difficulties in repatriation of dividends.
In its financial year ended December 31, 2024, OMZ ended the period with a strong balance sheet as total assets were US$1,47 billion.
“This trading statement provides an indication of a range for headline earnings per share and earnings per share in terms of paragraph 3.4(b) of the JSE Limited listings requirements compared to the six months ended 30 June 2024 (prior period),” OML said.
The group, however, noted that growth in results from operations was primarily driven by exceptional growth in Old Mutual Insure and the impact of favourable financial markets.
“In addition, the prior period included once off adverse mortality experience in personal finance and an impairment of a secured loan in Mass and Foundation Cluster,” OML said.
“This growth was partially offset by the negative impact of a persistency basis change in mass and foundation cluster and higher central costs which includes a once off restructuring provision incurred to reduce future spending.
“Adjusted headline earnings growth was further bolstered by increased shareholder investment returns as a result of improved performance in the South African and Malawian equity markets which were considerably above expected returns.”
