CBZ Holdings Limited (CBZ) raised US$115 million in credit lines in the first half of the year to meet the economy’s growing funding needs.
These lines of credit came from pan-African lenders that included the Africa Export-Import Bank, Shelter Afrique, and TDB Bank.
The African Development Bank recently said Zimbabwe has an annual funding gap of US$3,76 billion.
With is ZiG17,59 billion (US$1,28 billion) balance sheet as of June, CBZ is seeking to leverage its financial muscle to secure foreign currency.
“The group raised an additional US$115 million in lines of credit from strategic partners including the Africa Export-Import Bank (Afrexim-bank), Shelter Afrique and TDB Bank, to meet the economy’s growing funding demands,” CBZ chairman Luxon Zembe said, in a statement attached to the group’s half year financial results ended June 30, 2024.
Zembe said this was despite geopolitical tensions, weak commodity prices, reginal pressures, and domestic challenges around the El Nino induced drought and currency volatility.
CBZ reported that it had a foreign currency position of ZiG15,58 billion as at the end of June, translating to US$1,13 billion.
“In recent years, monetary policy and exchange control measures have undergone significant changes, which have positively affected the Group’s operations,” Zembe said.
“The economy also experienced significant improvement, as a result of a substantial increase in foreign currency transactions.
“Consequently, the group’s foreign currency transactions activity, deposits, and advances also increased.”
He said the prospects of better rainfall during the 2024/25 season were expected to boost activity in the agricultural and related sectors, going into the summer cropping season.
“The government is also expected to continue with the public infrastructure investment programme whereas private sector construction projects in the residential and industrial segments are expected to remain strong, buoyed by significant inflows of diaspora remittances and free funds,” Zembe added.
“The group will continue to reconfigure and position its business model towards unlocking long term value for its stakeholders.”
On the digital space, he said the group enhanced the digital platforms with various services including launching the CBZ Digital Mall, a banking service transactional platform for both CBZ and non CBZ customers.
“The group delivered a strong set of financial results for the half year ended 30 June 2024, demonstrating the strength of our robust strategy.
“Having consistently delivered the financial services needs of over 1 million customers, our profit after tax for the period under review stood at ZiG656,3 million,” Zembe said.
“This performance was buttressed by our customer-centric approach to nurturing relationships with our customers, accessible and reliable digital platforms, enhanced disbursements, and a diverse product offering to address the financial needs of our valued customers.
“Our investment and insurance products have seen a significant increase in demand, while our transactional, loan, and deposit activity has grown substantially.”
The profit after tax for the period was recorded from a 2023 comparative of ZiG1,23 billion.
The group’s balance sheet is supported by a customer deposit base of ZiG11,5 billion, loans and advances totalling ZWG4,76 billion.
“The group closed the period with a robust capital base and all subsidiaries were adequately capitalised,” Zembe said.
“We are determined to continue our focus on innovation, our strong dedication to ensuring customer satisfaction, and our solid market position to maintain our competitive edge in the industry.”