adminCABS senior regional manager (southern division) Mr Edson Ngaaseke said this while addressing delegates attending the Zimbabwe National Chamber of Commerce (ZNCC) inaugural regional awards ceremony for Matabeleland North Province in Victoria Falls on Friday night.
Mr Ngaaseke said members of the public and business were reluctant to deposit their funds with banks because of such past experience.
He said people, ordinary retail investors and other groups of people had their investments eroded prior to the introduction of the multi-currency system and were therefore shying away from the banking culture.
“On the other hand, banks need deposits for credit creation in order to provide loans. As you know funding for loans is from deposits predominantly,” he said.
Mr Ngaaseke said there was an urgent need to bring back the banking culture.
“This calls for you to start trusting banks once again. I implore you colleagues to consider this issue of trusting the banks seriously because when you go to the bank for borrowing, the bank will require that you provide statements that reflect your business activity,” he said.
“Our experience has shown that many businesses are falling short of this critical part of credit analysis and assessment. Failure to provide banking details makes it difficult for banks to confirm your financial statements resulting in facilities being turned down.”
He said it was estimated that banking deposits were at $3,3 billion, and more than $2 billion was estimated to be in the informal sector due to absence of incentives and low public confidence.
Mr Ngaaseke said at the moment, the banking industry was facing insufficient deposits to meet funding requirements.
Meanwhile, Mr Ngaaseke said CABS had launched a number of products in an endeavour to provide loans to businesses.
“The four products are, Distressed Industries and Marginalised Areas Fund (Dimaf), Small to Medium Enterprises Facility, Kurera/ Ukondla Youth Fund, and Agritred Facility,” he said.
The glittering ceremony, held at Elephant Hills Resort, was attended by players in the tourism, mining and agriculture sector.
Mr Misheck Mpofu was named Rural Businessman of the Year while the Exporter of the Year (Manufacturing) went to Savanna Woods, Exporter of the Year (Agriculture) award went to Spencer’s Creek, and Exporter of The Year (Tourism) went to Victoria Falls Safari Lodges.
The Exporter of the Year (Mining) award was won by Hwange Coal Gasifications, Tour Operator of the Year went to Wilderness Safaris. Mr Masimba Bhebhe was named Manager of the Year, and the CBZ’s Transformational Leader of the Year accolade went to Mr Trythings Mutyandasvika.
Elephant Hills Resort’s Corporate Social Responsibility award went to Jays Spar, Best HIV and Aids Awareness Campaign at the Workplace was clinched by Painted Dog, Entrepreneur of the Year went to Raz Dube, Special Award for Most Consistent Businesswoman was clinched by Mrs Tatenda Gunda of Tatenda Lodge and Safaris, while the Businesswoman of the Year was won by Mrs Edith Mhlanga.
Online Reporter