Published: 24 November 2025

Frustrated Zimbabwean insurance executives are calling for measures to ensure the domestic industry benefits from opportunities presented by foreign investors, amid concerns that international companies are relying on insurance coverage arranged in their home countries.

The issue dominated discussions at the recent Southern Africa Insurance Indaba in Victoria Falls, where delegates urged the Zimbabwe Investment Development Agency (ZIDA) to clarify whether mechanisms exist to channel a portion of foreign investor insurance into the local market.

According to UNCTAD, Zimbabwe's foreign direct investment (FDI) inflows have grown steadily over recent years, from US$194 million in 2020 to US$597 million in 2024. Local insurers argue that these inflows should create substantial business opportunities for domestic firms.

"Then, my issue is on the insurance that comes packaged with these investors from offshore," said one delegate. "We recommend that, as investors are licensed, a certain quota of their insurance requirements should be allocated to the local market. We may not have the capacity to cover everything, but collectively we can provide the required cover."

Another delegate noted that many investors default to insurers from their home countries, often in the UK, US, or China, leaving the Zimbabwean insurance sector sidelined.

ZIDA chief executive Tafadzwa Chinamo acknowledged this trend, noting that insurance is one of the first services foreign investors inquire about. "Investors naturally start with insurance from their home countries. If I am raising capital from abroad, I will use my familiar insurers to secure my investments before even considering local options," he said. Chinamo highlighted the opportunity for local insurers to collaborate and provide value once investors begin operations in Zimbabwe, including compliance with local laws and layered coverage arrangements.

Linda Mariwande, general manager of Old Mutual Life Assurance Company Zimbabwe, said local insurers face structural disadvantages when competing with global firms, which often have larger pools, better risk diversification, and sophisticated pricing models. "But we can provide primary coverage, and anything beyond our capacity can be retroceded or reinsured. What we want is a chance to take the first layer of the risk," she said.

Mariwande warned that without regulatory frameworks to secure local participation, a substantial share of potential business will continue to leave the country. Both Chinamo and delegates called for policy measures to ensure domestic insurers can compete for at least the initial layer of coverage, positioning the sector to benefit from Zimbabwe's growing inflows of foreign investment.
- The Standard

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