Malawi’s Nico Holdings Limited has opened a new branch in Mozambique that aims at providing premium insurance services and pension management in that country.
The company’s Managing Director, Felix Mlusu said in Blantyre at a press conference recently that that highlighted a milestone through 40 years of the company’s operations.
Mlusu said the branch called Nico Mozambique Vida that opened its doors on April 2, 2012 focuses on selling to its clients “an exciting range of services being individual life products, group life products and pensions”.
The MD indicated that the company has so far invested US$2 million towards the establishment of the new branch, adding prospects are high that Malawi will generate the much-needed foreign exchange (forex) through dividends.
Mlusu said the new branch follows the satisfaction of necessary requirements that were approved jointly by both the governments of Malawi and Mozambique, saying Malawi will have 51 percent while Mozambiqan companies share are at 49 percent.
“After satisfying all the requirements, effective January 12, 2012, I am pleased to say that we have opened a new branch in Mozambique. The development will enable Malawi generate forex in terms of dividends,” Mlusu said.
He said Mozambique’s Gross Domestic Product (GDP) has grown from 7.5 percent to 7.8 percent from 2011 to 2012, according to a survey conducted by the International Monetary Fund (IMF).
The MD added that the country’s insurance penetration is pegged at 0.115 percent, which is lower that Malawi’s penetration recorded at 1.2 percent, adding more Mozambicans would enjoy the benefits of insurance premiums.
“There is more insurance penetration in Mozambique than in Malawi and this gives us advantage in terms of investment,” he added.
He said that the setting up of the new branch in Mozambique’s capital, Maputo is in line with Nico’s African growth strategy that will lead to more branches being opened in African countries.
Currently, according to Mlusu, Nico Holdings which has its headquarters in Malawi has branches in the country, Zambia, Tanzania, Uganda, Zimbabwe and now Mozambique.