ZIMBABWEAN UNREST HINDERS SALE OF STATE-OWNED REINSURER

Political unrest is threatening to disrupt the forthcoming privatisation of state-controlled Zimbabwe Re, IFD ’s sister publication the Re report has disclosed. The reinsurer’s managing director Albert Nduna told the newsletter that some potential bidders were pursuing a wait-and-see policy because of uncertainty over Zimbabwe’s forthcoming elections and ongoing media coverage of violent encounters in the country. “We cannot underestimate the effect of the problems. It is quite adverse”, he said. “People have not said so, but you feel that they are anxious”. Mr Nduna also disclosed growing speculation in Zimbabwe that the government might try to sell its entire 51% holding in the reinsurer, rather than merely reduce its stake to 20%, as had been officially announced. He said that the additional cash from the full divestiture would prove attractive to the government, while Zimbabwe Re itself would welcome a major foreign reinsurer as a strategic or technical investor.