CINANCIAL services group CBZ Holdings Limited has set a goal to raise US$500 million in credit lines this year to tackle the country’s liquidity challenges and support economic growth.
The initiative comes after the financial institution last year mobilised US$115 million for on-lending to sectors of the economy. This was not enough to meet the economy’s demands, according to CBZ Holdings CEO Lawrence Nyazema.
The banking group’s move is part of broader efforts to mobilise resources for the economy, leveraging its strong balance sheet and reputation as a leader in the financial services sector.
“Our target for 2025 is at least half a billion US dollars. And we believe if we manage to raise a significant portion of that target, the liquidity challenges that everybody likes talking about will be a thing of the past,” Nyazema said.
“We also believe that as the largest player in financial services, it is our role as CBZ to ensure that we raise the largest part in lines of credit, because we have got the balance sheet and we have got the credibility to do so,” he added.
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Reflecting on the credit lines secured in 2024, Nyazema noted that while the figure seemed significant at the time, it was insufficient given the country’s financial needs.
“On reflection, while we thought it was a huge amount, it was not enough because the economy needs more,” he said.
In addition to its focus on credit lines, Nyazema said the group will strengthen its support for small and medium enterprises (SMEs), a key pillar of the economy.
The bank recently moved its SME banking operations to the retail banking division which boasts of over 50 branches. Initially, the SME banking operations were housed in the corporate banking division which has three outlets.
“Incorporating SME banking into retail was a deliberate move because your average SME player is likely to walk to their nearest branch and look for a solution there,” Nyazema said.
CBZ has also launched an SME innovation hub at its Cripps Road branch in Graniteside and introduced targeted funding for SMEs.
However, Nyazema stressed the importance of accountability and performance among SMEs to ensure the sustainability of the group’s support.
“My request and appeal to SMEs continues to be that you need to have a track record of performance. Quite a number of them do not have security and past performance by some of the SMEs has not been exemplary,” he said.
