CABS negotiates new funding lines for key economic sectors

CABS is negotiating additional lines of credit for productive sectors, building on funding from development partners that closed the 2025 financial year with a total limit of US$162,70 million.

The financial institution said the existing facilities were largely channelled towards key sectors, with agriculture and mining receiving the bulk of the support to drive production and value creation.
CABS managing director Mr Mehluli Mpofu said the society remains focused on mobilising affordable capital to underpin economic growth.

“The society remains committed to supporting national economic development by providing targeted financial solutions.

“CABS continue to play a significant role in capitalising primary and secondary industries through tailored credit facilities.

“We also facilitated strengthening cross-border commerce. During the reporting period, CABS managed to secure lines of credit from development partners, closing the year with a total limit of US$162,70 million,” he said in the annual report for the year ended December 31, 2025.

Mr Mpofu said the bulk of the funds were deployed into productive sectors, particularly agriculture and mining.

“These funds were mainly deployed to the agriculture and mining sectors with investments of over US$80 million and US$40 million, respectively.”

He said the society is now working on expanding its funding base to further support economic activity.
“The society is also negotiating further credit lines earmarked for the productive sector of the economy.

“In addition, we have renewed our participation in the syndicated US$210 million facility to the Zimbabwe Electricity Transmission and Distribution Company (Private) Limited (ZETDC) to acquire essential power distribution equipment and importation of power.”

CABS also participated in the Targeted Finance Facility (TFF) during the period under review, drawing ZiG60 million to support businesses.

“In the period under review, the financial institution also participated in the Targeted Finance Facility (TFF) to the tune of ZWG60 million.

“This TPP sought to provide affordable working capital to productive sectors, aiming to support the targeted 6 percent economic growth for the year 2025.

“This facility was availed to banks by the Reserve Bank of Zimbabwe (RBZ) and it helped to support working capital requirements for participating business customers in the society,” Mr Mpofu added.

CABS chairperson Joshua Tapambgwa said the institution expects to conclude negotiations for additional credit lines soon, with deployment targeted for early next year.

“We anticipate concluding ongoing negotiations for credit lines dedicated to the productive sector, with deployment expected in early 2026 to support economic activity and value creation,” he said.

Mr Tapambgwa said the society will continue to prioritise innovation and inclusion in its growth strategy.

“Our focus will remain on accelerating digital transformation, strengthening the society’s balance sheet and expanding financial inclusion initiatives, particularly those that empower women-led enterprises.”

Meanwhile, the building society said in the year under review, net interest income remained strong, rising by 29,43 percent from ZWG656,80 million in 2024 to ZWG850,08 million, mainly due to a notable reduction in interest expense and growth in interest-earning assets.

Net fee and commission income increased by 28,45 percent to ZWG1,533 billion from ZWG1,194 billion in the prior year.

Overall, net income from operations improved by 28,8 percent to ZWG2,384 billion from ZWG1,850 billion, demonstrating sustained momentum in the society’s core business lines.

“Other operating income declined to ZWG210,45 million from ZWG580,93 million, largely reflecting the effect of a more stable exchange rate on foreign currency-denominated assets and liabilities.

“Operating expenses increased to ZWG1,669 billion from ZWG1,370 billion, driven mainly by business growth-related costs, currency-denominated

“As a result, the Society achieved an operating profit of ZWG877,11 million against ZWG955,32 million achieved in 2024.”

The financial institution added that investment-related income showed a marked recovery, with fair value adjustments contributing a positive ZWG68,59 million, reversing the prior year’s loss of ZWG169,91 million.

Dividend income recorded modest growth.
As a result, profit before tax improved by 21,08 percent from ZWG828,02 million in 2024 to ZWG1,003 billion in 2025.

During the year, CABS declared a ZWG389,71 million dividend to its shareholders, reflecting the strength of the business and its disciplined capital management.