Online Reporter
Nelson Gahadza
Zimbabwe’s largest financial institution, CBZ Holdings, says embracing Artificial Intelligence and trade finance has the potential to drive economic growth, given the technology’s ability to enhance productivity and efficiency.
Group chief executive officer Mr Lawrence Nyazema, speaking at the group’s Thought Leadership meeting, said Zimbabwe had the potential to become a hub for AI innovation, given its skilled workforce and potential for renewable energy.
“In terms of AI, not only at a country level or continental level, but even at a global level, they do not come better than Professor Arthur Mutambara.
“We invited one of our own to come and share with Zimbabwe on what AI is at its most basic and how we can take advantage of the technology as an economy going forward,” he said.
Mr Nyazema said the AI global capital is now almost US$4,5 trillion, and Zimbabwe cannot afford to ignore that.
“What is important is for us not just to use the AI that has been created elsewhere in other places; we need to be at the centre of the creation of AI that talks to our values and ethos as a country. We already have raw ingredients such as energy and the potential oil project that is coming through Invictus Energy,” he said.
Mr Nyazema also emphasised the importance of trade finance and infrastructure development in promoting economic growth.
He highlighted the bank’s partnership with Afreximbank, which has provided lines of credit exceeding US$200 million for trade finance.
“Afreximbank has not only been a friend to Zimbabwe, but to CBZ and we are now enjoying lines of credit of more than US$200 million, mostly in the trade finance space. Afreximbank has since indicated that it wants to take that number to US$500 million in the fullness of time,” he said.
Mr Nyazema also highlighted that last month, CBZ formed a joint venture (JV) partnership with Afreximbank, the African Trade Distribution Company, which is going to be instrumental in the rollout of trade across the continent.
“The JV that we formed will promote Zimbabwean exports, starting with agricultural products, and gone are the days when our farmers would struggle for export markets at the right price,” he said.
“We are also going to be looking at importation opportunities riding on Afreximbank, which is the largest financier of trading on the continent,” he said.
Professor Mutambara, presenting on the role of AI in shaping the future of trade finance, said that with the African Continental Free Trade Area (AfCFTA) aiming to boost intra-African trade, AI could play a crucial role in facilitating this growth.
“AI is affecting every sector and has a multiplier effect on productivity, and in addition to productivity, AI is enhancing efficiency and driving innovation,” he said.
He said on trade finance, AI had the potential to streamline processes, reduce manual errors and increase efficiency, as well as that the AI-powered systems can detect anomalies and prevent fraudulent transactions. “AI can analyse trade data to predict supply chain disruptions and optimise inventory management, and AI-driven credit scoring and risk assessment can improve access to finance for small to medium enterprises (SMEs) and individuals,” he said.
Professor Mutambara said Zimbabwe needed to come up with an AI vision, strategy and implementation matrix.
“However, AI investments require collaboration at the country, region and continent level because to run a data centre, an AI factory, there is a need for about 2,000 megawatts, the amount of energy used per country.
“If we want to be creators of AI systems, we must work together to produce the energy required and produce the talent that is required and also the strength that is required,” he said.
Afreximbank Director of Clients, Mr Andrew Masuwa, said the bank had a product called the engineering and professional services facility, targeted at young professionals with bright ideas and were willing to latch onto large projects.
“On the AI creation and technology development, we are saying to these young, bright minds coming out of our polytechnic universities that they need to have a chance at seeing their ideas being put to the test, and that is what we do through our engineering and professional services facility,” he said.
He said by the end of 2024, the bank started working with universities across the continent to take ideas beyond the academic concepts.
In terms of the opportunities for economic development for Zimbabwe, Mr Masuwa said the bank is supporting various projects and extending lines of credit to various local banks.
“We are supporting industrial park development and special economic zones, and we are saying even locals can find themselves within this space of the economic zone and take advantage of the incentives that exist.
“In fact, we are not only financing the hard infrastructure of the building of the industrial park, we also finance the occupants in those industrial parks by helping them to bring in machinery,” he said.
CBZ Bank general manager Ms Valeta Mthimkhulu said Africa should take advantage of its youth dividend to drive trade finance and AI in order to achieve sustained economic growth.
“The bank has a US$30 million facility with the Afreximbank to support SMEs and a further US$200 million for corporates and key sectors of the economy, such as agriculture, mining and manufacturing, among others,” she said.
She said the bank continues to innovate and help companies to succeed and thrive.
