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Enacy Mapakame Business Reporter
Dr John Mangudya attended his last Annual General Meeting as CBZ Holdings group chief executive officer on Wednesday before taking over the reins at the helm of the Reserve Bank of Zimbabwe.
In March, President Robert Mugabe appointed Dr Mangudya to replace Dr Gideon Gono as the RBZ Governor. However, the banker only effectively assumed his duties on May 1, a day that other workers in Zimbabwe and from across the world were celebrating Workers’ Day.
Dr Mangudya’s new post is challenging considering the stinging liquidity shortages and mounting deflationary pressures. He however, leaves CBZ in a fairly health state.
Though the banking group reported massive declines in profits in the first quarter of 2014, it observed progress on its nationwide low-cost housing project.
In the review period, CBZ profits took a 43 percent hit in profits on heavy impairment charges.
Speaking as the CEO of CBZ during last week’s AGM, Dr Mangudya said the housing scheme for the Gweru Nehosho high density suburb was progressing according to schedule. Other houses will be constructed in Mutare’s Chikanga area.
“The housing scheme is progressing well, first phase of the Nehosho in Gweru has started. This will cost US$8 million,” he said.
A total of 1 095 stands will be developed in Nehosho in a period of eight months.
Also addressing shareholders, the incoming group chief executive officer, Mr Never Nyemudzo said the second phase, which involves construction of core houses, will commence thereafter. Progress on the maiden US$68 million bond was also noted.
Mr Nyemudzo said, “We retired the maturity of the US$68 million two weeks back and now we are at an advanced stage to raise the renewal at a higher level of US$200 million.”
The biggest bank in deposits recorded a 7,6 percent decline in total income in the quarter to US$34,4 million from US$37,2 million a year ago.
Impairment charges rose 52 percent to US$3,8 million.
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