MBABANE – Diversified financial services group Vunani Limited, the parent company of Oracle Insurance Eswatini, has set its sights on expanding its footprint in the SADC countries.

The group has identified Eswatini, Namibia and Botswana as key markets for unlocking new revenue opportunities amid a rapidly evolving financial services landscape. This strategic pivot comes as Vunani seeks to navigate a volatile post-pandemic economic climate marked by geopolitical tensions, subdued investor confidence and slow domestic recovery in South Africa.

With its headquarters in Johannesburg and operations in six African countries, the group is now accelerating plans to diversify its income base and increase profitability in the coming financial year. “We are cautiously optimistic and believe we are well-positioned to benefit from any growth that may arise from the economy going forward,” said Group Chief Executive Officer (CEO) Ethan Dube in the company’s 2025 Integrated Annual Report.

During the 2024/25 financial year, Vunani made tangible progress in rolling out its regional expansion strategy. The group launched operations in Namibia, set up a branch in Lesotho, and continued to deepen its presence in Eswatini and Botswana, both of which have been instrumental to its southern African ambitions.

Vunani’s executive team has reaffirmed that in the short- to medium-term, further expansion into Zimbabwe and Zambia is on the cards. The group had previously been cautious about entering Zimbabwe due to currency instability but has now observed signs of greater financial stability and is preparing to take a more aggressive approach in that market.

For Eswatini, the group’s footprint is anchored by Oracle Insurance Eswatini, which Vunani acquired in 2019. The insurance arm, while having faced challenges in the past financial year, remains a core pillar in the group’s long-term revenue plans.

Oracle Insurance Eswatini, a composite insurer offering both long- and short-term products, continues to serve a wide array of clients including corporates, pension funds and individual policyholders. While the insurance segment posted a loss of R3.6 million in FY25, this was an improvement on the previous year’s R7.6 million loss. The primary cause was a non-cash impairment of R18 million related to the value-in-force intangible asset – a valuation of expected future income from current policies.

Despite the accounting setback, the core insurance operations benefited from increased dividend income and investment interest, as well as positive fair value adjustments of R42.8 million on insurance assets. Oracle’s continued resilience positions it as a springboard for future growth in Eswatini and the broader region.

With an experienced management team and reputable reinsurance partners — including Hanover Re and African Re Corporation — Oracle’s strategy will centre on gaining greater market share, expanding distribution, and optimising its product mix.

conflicts

Like many players in the financial services sector, Vunani grappled with a difficult macroeconomic backdrop. Domestically, South Africa’s economy expanded by a mere 0.5 per cent, while global headwinds included the prolonged Russia-Ukraine and Israel-Palestine conflicts, shifting trade alliances, and high inflation. The group posted a loss of R3.1 million compared to a profit of R24.2 million in the previous financial year. This was largely due to R68.5 million in negative fair value adjustments and impairments, which masked the underlying performance improvements in operating profit before these non-cash items.

Nevertheless, the insurance business remained the largest revenue contributor, delivering R278.1 million, followed by the asset administration segment at R213.3 million, and fund management at R136.1 million. To drive its next phase of growth, Vunani is banking on three critical levers: people, technology and partnerships. With 391 employees across its group, the company has committed to continuous investment in upskilling its workforce through both formal and informal training. It has also implemented incentive schemes to retain top performers.

Additionally, the group is deploying more resources into digital platforms and customer relationship management (CRM) tools to enhance service delivery. These tech investments are particularly important as Vunani prepares to launch or scale operations in new jurisdictions where digital client engagement will be vital. “We are quite optimistic that we will now begin to sweat our platforms to ensure we drive our business as hard as we can in order to unlock further value for our shareholders,” said Dube.

In a bid to unlock value and scale efficiently, Vunani has been exploring joint ventures and equity partnerships. One such notable development was the sale of a 30 per cent stake in Fairheads, its asset administration subsidiary, to Old Mutual Corporate Ventures.

Fairheads, which administers beneficiary funds for minors of deceased pensioners, has proven resilient, posting a R34.6 million profit in both 2024 and 2025, and growing its assets under administration to R10.9 billion. The Old Mutual transaction signals the group’s willingness to form strategic alliances that not only enhance capital access but also improve operational capabilities and reach. “We believe partnerships like this will help us unlock value, and going forward, we will continue exploring this option,” Dube added.

… commitment to good governance, B-BBEE

MBABANE – Vunani has remained steadfast in its commitment to Broad-Based Black Economic Empowerment (B-BBEE), transformation and responsible corporate citizenship.

The group retained its Level 1 B-BBEE scorecard and continues to align with South Africa’s National Development Plan objectives. The company also operates the Vunani Coronation Training Academy, Africa’s only dedicated equity analyst training programme, which marked its 21^st anniversary in 2025. More than 30 alumni have passed through its mentorship and are now in senior leadership roles across the continent.

The academy and other education-related initiatives reflect the group’s view that long-term success is intertwined with investing in people and communities. Eswatini remains central to Vunani’s expansion blueprint, both for its relatively untapped insurance market and as a strategic entry point into the SADC region.

With Oracle Insurance firmly established in Mbabane, Vunani’s focus for the next year will be to enhance Oracle’s profitability, introduce new insurance products, and potentially expand distribution channels. “Eswatini continues to offer unique growth potential and we remain committed to playing a constructive role in supporting financial inclusion in the country,” the report notes.

Furthermore, the ongoing infrastructure investments in Eswatini – including new retail centres, roads and housing – create ancillary demand for short-term insurance, which Oracle can capitalise on. In the face of geopolitical turbulence, economic stagnation and shifting market dynamics, Vunani Limited is choosing not to retreat but to pivot – boldly expanding into neighbouring countries, strengthening its homegrown brands like Oracle Insurance Eswatini, and banking on partnerships to secure a bigger footprint in Africa’s financial future.

With solid progress in its regional growth agenda and a renewed focus on synergies, talent, and technology, Vunani is aiming to rise above the short-term setbacks and emerge stronger, more diversified, and more resilient in the years ahead.