Online Reporter
Nelson Gahadza
Business Reporter
CBZ Holdings expects its growth trajectory to strengthen in the second half of the year, supported by rising deposits, increased lines of credit, improving economic activity and an expanding pipeline of infrastructure, mining and agricultural projects.
Presenting the group’s half-year financial results, CBZ Holdings chief executive Mr Lawrence Nyazema said the business was operating in a more supportive macroeconomic environment, with inflation remaining subdued and economic growth projected at 5 percent.
“In my mind, the biggest problem that we have had for the past 20 to 30 years in Zimbabwe is inflation. Therefore, once we manage our inflation, it means other aspects of the economy can grow,” he said.
He said the stability of the local economy was also being reflected in the growth of banking sector deposits, which had risen from about US$2 billion in 2019 to around US$6 billion in 2026.
Mr Nyazema said the growth was increasingly being supported by genuine economic activity, pointing to rising diaspora inflows and export receipts.
“This year we are expected to get at least US$2 billion coming in from diaspora inflows, from export flows,” he said, adding that total inflows had increased from about US$6 billion in 2016 to an expected US$22 billion this year.
He said this provided greater comfort that the current expansion in deposits was being supported by real economic activity rather than speculative growth.
At CBZ Bank, total assets increased by more than US$100 million in the six months to reach about US$1,5 billion, from US$1,4 billion previously.
Advances also increased from US$359 million at the end of last year to US$454 million, although Mr Nyazema said the group wanted to improve its loan-to-deposit ratio, which remained below 50 percent.
The bank is also positioning itself to increase lending through additional external funding.
Mr Nyazema said that although lines of credit declined from US$159 million to US$115 million after repayment of one facility, CBZ has secured an additional US$150 million in new lines of credit, with drawdowns already taking place.
Mr Nyazema said discussions were also underway for another US$100 million facility.
“This year, we would have raised at least a quarter of a billion in new lines of credit. But we are not stopping there,” he said.
