Story by Stanley James, Business Editor
ZIMBABWE’s banking sector is ramping up efforts to support productive industries, with the mining sector emerging as the primary beneficiary of increased loan allocations.
During an analysts’ briefing on Monday, CBZ Holdings Limited, the country’s largest financial institution by deposits and assets, confirmed the sector’s strategic focus on funding key economic drivers.
Bankers Association of Zimbabwe President, Mr Lawrence Nyazema, stated that the expansion of loan facilities reflects the financial sector’s commitment to economic growth.
“The productive sectors are a key component in the growth of the economy, a move that has seen financial institutions focusing on what can be done to further enhance the value of returns to firms by mobilising additional funding to sustain loan requirements, of course in the future we intend to further double our efforts, but at the present moment, it is imperative to note that the mining sector is accounting for a huge proportion of the overall loans riding on its ability to attract investments and facilitate increased uptake of projects,” Mr Nyazema said.
Regional and multilateral financiers continue to provide local banks with credit lines for on-lending to the productive sectors at affordable terms.
“There is an increased appetite for productive sector-based loans in with the development agenda within the economy,” CBZ Holdings Group Chief Finance Officer, Mr Joel Makombe said.
“Such a trend entails the need to come up with innovative systems aimed at ensuring that there is an adequate amount of money for lending. Such a trend has therefore resulted in the banking sector including us as CBZ, accessing lines of credit that have also gone a long way in easing funding constraints while accelerating recovery and growth of the economy.
“In the long term, it is our mission to continue sourcing or mobilising more credit lines, there is that focus on what can be done to further scale up the scope of business for banks in terms of lending by extending the repayment terms and easing of borrowings costs in line with macroeconomic stability.”
Zimbabwe is shifting focus from a consumptive economy to a productive-based system as evidenced by increased imports of raw materials and equipment.
