FINANCIAL services giant CBZ Holdings (CBZH) has secured a US$50 million line of credit from a strategic partner, in a move aimed at bolstering support for corporates and small-to-medium enterprises (SMEs), businessdigest can reveal.
According to group chief executive officer Lawrence Nyazema, the funds are expected to be disbursed before year-end, providing a much-needed injection of capital for businesses.
“We are pleased to confirm that we have secured final approval for a US$50 million line of credit,” he told businessdigest in an interview.
“These funds are set to be disbursed before the end of the year, and we will share more details about our strategic partner as we initiate the disbursement process.
“This funding will primarily support corporates and SMEs, with a strong focus on entities operating in the export sector. Key sectors include horticulture, agro-processing, energy, telecommunications, manufacturing, mining, tourism, and other trade-related activities.
“These sectors are critical to driving economic growth and enhancing Zimbabwe’s participation in global markets.”
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The CBZH chief revealed that their loan book reflected a well-diversified portfolio aligned with their strategy to support key sectors of the economy. He said agriculture currently took the largest share, followed by manufacturing, mining, and trade.
“This allocation underscores our commitment to driving productivity and fostering economic resilience across Zimbabwe’s major industries,” he noted.
Economist Eddie Cross revealed during a panel discussion at the Zimbabwe Independent’s 2024 Banks & Banking Survey and Awards ceremony held in Harare last week that the agricultural sector had received “virtually no financing” despite being a critical component of the economy.
Historically, every bank in Zimbabwe had a dedicated agricultural department, staffed by specialists who worked closely with farmers to develop crop budgets, he noted.
In response to concerns raised by farmers about the affordability of funding, Nyazema acknowledged the issue and noted that his bank was actively designing tailored financial solutions with competitive interest rates and flexible terms to address these concerns.
“Our partnerships with various stakeholders, including government, aim to enhance accessibility to affordable credit for farmers, particularly in high-impact areas such as horticulture, grain production, and irrigation development,” he said.
Following the decision by the Competition and Tariff Commission to cap CBZH’s stake in First Mutual Holdings Limited at 31,22%, Nyazema said they had withdrawn their proposed mandatory offer to minority shareholders.
“This outcome presents an opportunity to rethink our strategy. While the merger is no longer viable, our vision remains unchanged; we are focused on growing CBZ Holdings into a dominant financial institution within Zimbabwe and extending our footprint into regional markets,” Nyazema said.
“Going forward, we will explore alternative pathways to achieve our goals. This may involve pursuing partnerships, acquisitions, or strategic collaborations that align with our long-term ambitions. While this approach may take longer, we are confident it will deliver sustainable growth.”
The group delivered a robust financial performance for the nine months ended September 30, 2024, underpinned by a solid asset base of ZiG30,05 billion, a comprehensive product range, and a strategy that continues to position the business favourably within a competitive landscape.
With a profit after tax of ZiG1,01 billion and a total income of ZiG2,68 billion, the group has effectively leveraged its core strengths to achieve consistent growth, according to Rumbidzayi Angeline Jakanani, the group’s chief governance officer.
Net interest income reached ZiG880,02 million, supported by a loan portfolio of ZiG8,90 billion, highlighting the group’s prudent approach to lending and commitment to maintaining high-quality assets.
Furthermore, Jakanani said non-interest income of ZiG1,80 billion underscored the group’s strategy to diversify revenue streams and enhance income stability through diversified financial services and product offerings.
- The exchange rate as at September 30, 2024 was US$1: ZiG24,9