Govt reinvests ZW$750 million dividend in AFC Commercial Bank

By Stanley James, Business Editor

ZIMBABWE is forging ahead with policies to finance agriculture value chains after the government reinvested its ZWL$750 million Zimbabwe dollar dividend in the AFC Commercial Bank for recapitalisation.

The state-owned banks’ full-year financial results for 2021 released this Thursday reflect above market expectation profits.

However, the government as the majority shareholder in the institution has resolved to reinvest part of its dividend into the bank.

“The financial reflects a modest path to increase profitability as the profit reached an over one comma five billion Zimbabwe dollar profit mark, however after taking a cautious and careful approach the government as our main shareholder has decided not to utilise the dividend or its part of the cake from the net profit margins,” said Ken Chitando, AFC Commercial Bank Managing Director.

The government has also directed the institution to focus on viability.

“It is always an ideal motive for the shareholder to ensure profitability is sustained so indeed, we are even gearing for more profits in line with the thrust that the shareholder wants or intends to take for the benefit of the farmers,” said Chitando.

AFC Commercial Bank is among the four subsidiaries that were formed after the restructuring of Agribank in May last year.

The bank’s subsidiaries are in the fields of insurance, land, development bank and a leasing company.

The commercial bank is also in the market to source further funding for sustaining the requirements of the country’s agriculture industry.