admin
Michael Tome
Business Reporter
NMB Bank Zimbabwe says it is scouting for more external lines of credit to cater for the huge demand coming from its exporting clientele, after the bank recently secured a €12,5 million facility from the European Investment Bank (EIB).
According to NMB the €12, 5 million loan acquired from EIB is almost fully disbursed, leading the bank to seek additional loans from foreign lenders amid strong demand.
NMB Bank chief executive Gerald Gore said this while speaking at the official opening of the bank’s head office in Borrowdale on Wednesday.
He attributed the high demand for the loans to reasonable interest rates and longer tenure further indicating that the bank will continue to leverage on the strength of their foreign shareholders like Arise, African Century, and AfricInvest to get the loans.
The EIB loan came with a tenure of seven years, which allows producers to venture into long-term projects, as it affords them a chance to invest in new technology and retooling and still be able to compete in the international market due to fair pricing.
He said the bank was channeling most of the funds towards exporting horticulture farmers and some towards the manufacturing sector in line with the country’s objective to improve foreign currency generation by various sectors of the economy.
“Many of you may recall that two months back we were here signing a €12, 5 million line of credit from the EIB, the money is almost getting finished given that the demand we have is more than the loan money we received, so we are in the process of getting one or two loans so that we continue to support the exporting customers,” said Mr Gore.
However, he did not disclose the source and timelines for the receipt of the loans.
He informed the gathering that most of this money would be channeled to exporters as it helps in recouping foreign currency to repay the loans.
“The loan distribution is very specific, thus particular focus on horticulture because there is a drive to generate forex in the country, so we are supporting farmers doing blueberries and other horticulture products like peas exported into Europe and Asia, also with a little bias towards manufacturing companies that export.”
NMB forked out between US$12million -$15 million for the construction of its new head office in Borrowdale.
The new structure is 100 percent powered by solar in tandem with the United Nations’ Sustainable Development Goal (SDG) number seven on “Affordable and Clean Energy” which seeks to promote the use of renewable energy across the world.
“The building is self-sufficient in terms of energy and we are actually feeding considerable energy back into the national grid,” said Mr Gore.
Speaking at the event on behalf Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr. Jesimeni Chipika, deputy director, bank supervision, Rachael Mushosho encouraged the private sector to complement Government efforts and make investments in infrastructure within the country as enunciated in the strategic blueprint, National Development Strategy 1 (NDS1).
“As regulators, this is what we seek to foster within the financial services sector, sound, and solid financial institutions. Having our own local institutions push and drive infrastructure development is not only good for the financial services sector, but for the country as a whole, “she said.
NMB board chairman Benedict Chikwanha noted that the organisation had come of age and thus deserved to be housed at a decent building and location in Harare.
“We have come of age as an institution and we pride ourselves on 29 solid years of providing unparalleled financial solutions to this market, it is befitting that at almost 30 years of existence we should have our own head office.
“Our head office is more than a premise but a show of elegance of the NMB brand, the building portrays the solidness of our institution,” he said.
Online Reporter