Online Reporter
Nelson Gahadza
Senior Business Reporter
Zimbabwe’s largest financial services group by deposits, CBZ Holdings’ total deposits reached the US$1 billion mark in 2025, from about US$900 million in 2024, driven by a strong customer base and growing traction in its diversified banking and ecosystem strategy.
Presenting the group’s financial performance for the year ended December 31, 2025, chief executive Mr Lawrence Nyazema said the deposit growth was achieved against a complex operating environment characterised by tight global and domestic liquidity conditions and elevated borrowing costs.
“In terms of total deposits, we are happy to say we went above the one billion US dollar mark. By the end of the year, we were looking at almost US$1,1 billion, largely driven by a 30 percent growth in customer deposits,” he said.
He added that the strong growth in deposits marks a significant shift for the group, which has been pursuing a strategy focused on deepening financial intermediation while tapping both domestic and external funding sources.
Mr Nyazema said the group’s performance comes against the context of global economic developments that continue to shape the cost and availability of capital.
He noted that global inflationary pressures, which peaked around 2021 and 2022 due to supply chain disruptions, triggered aggressive interest rate hikes by major central banks, including the United States Federal Reserve, where rates rose to as high as 5 percent to 5,5 percent.
He noted that although inflation has since moderated and benchmark rates have eased to around 3,5 percent to 3,75 percent, these levels still influence the pricing of external funding accessed by local banks.
“When we borrow money from the international market, the benchmark rate is positively aligned to the Fed rate. So when we raise, for example, a US$150 million facility, the base rate is around 3,62 per cent,” he said.
Mr Nyazema said the local economy showed relative stability during the period under review, with improvements in inflation, exchange rate movements and the balance of payments position.
However, he said structural inefficiencies continue to constrain financial intermediation.
“Lending rates in local currency remain elevated at between 30 percent and 40 percent despite low inflation levels, a situation that is unsustainable for borrowers.
“As a lender, I would hesitate to lend at those rates because projects become unviable,” he said.
He noted that the economy also remains heavily dollarised, with approximately 80 percent of deposits held in United States dollars, reflecting the dominance of foreign currency in transactions.
At the same time, Mr Nyazema said Zimbabwe continues to operate as a largely cash-based economy, with significant withdrawals occurring shortly after salaries are deposited, limiting the ability of banks to retain liquidity within the system.
“Despite these constraints, CBZ’s deposit growth was largely driven by organic expansion in its core banking business rather than reliance on external funding.
“Of the US$232 million increase in deposits during the year, only US$42 million was attributable to lines of credit on a net basis.
“It means most of the growth came from current accounts,” he said.
He added that a decent level of growth also came from fixed deposits as well as savings accounts,” Mr Nyazema said.
He added that the group’s philosophy is to offer a full range of investment options to the market.
“The strategy also targets the informal sector, which accounts for an estimated 75 percent of economic activity, as a key source of potential deposits.
“By designing products that appeal to informal players, the group aims to gradually channel funds into the formal financial system,” he said.
Mr Nyazema said Zimbabwe’s financial sector remains significantly underdeveloped relative to the size of the economy.
He said that with a gross domestic product estimated at around US$53 billion, total deposits in the banking sector stand at approximately US$4.8 billion, representing less than 10 percent of economic activity.
“This mismatch limits the availability of credit and creates competition for scarce capital. To address this imbalance, CBZ is pursuing a dual strategy that combines deposit mobilisation with increased access to international funding and during the year, the group’s lines of credit grew from US$132 million to US$159 million, while US$88 million was repaid, reflecting strong repayment discipline,” he said.
Mr Nyazema indicated that the group is planning to scale up its access to external funding, targeting at least US$100 million in additional lines of credit at the banking level, alongside a US$50 million facility at the holding company level.
“This capital will support lending activities and investments across the group’s subsidiaries,” he said.
Mr Nyazema said the group’s broader strategy is anchored on strengthening its ecosystem through its various strategic business units, which include banking, agribusiness, insurance and investments.
He said customer growth remained strong across the units, with banking customers increasing by 13 per cent, while insurance and agribusiness recorded growth of 20 per cent each.
“Customer satisfaction levels also remained high, exceeding 80 percent, supported by improved service delivery and digital investments,” he said.
He added that agribusiness is emerging as an important growth area, with the group expanding into commodity trading and establishing partnerships aimed at facilitating both imports and exports.
During the year under review, the insurance cluster also recorded significant progress, particularly in life assurance, where policy numbers nearly tripled to around 300 000.
Mr Nyazema said the group’s investments cluster is positioning itself for future growth through property and agriculture-linked projects, which are expected to complement the core banking business and enhance overall returns.
Beyond the domestic market, Mr Nyazema said CBZ is exploring regional expansion opportunities in microfinance and insurance, targeting markets such as South Africa, Zambia and Botswana.
He said the group is also leveraging digital platforms, including its e-marketplace, to reach customers in the diaspora and expand its footprint beyond Zimbabwe.
“We are small, but once we start seeing success, we should be able to scale fairly quickly,” Mr Nyazema said.
Looking ahead, he said the group will continue to focus on deposit mobilisation, access to affordable capital and diversification of revenue streams.
