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Francis Gakanje
Banking group, NMBZ Holdings, is negotiating three new lines of credit valued at US$75 million to support key economic sectors, including agriculture.
The listed banking group did not however reveal the source of the funding facilities presently under discussion and are at various stages.
This comes after NMBZ Bank recently obtained US$25 million from Proparco, a French Development Finance Institution.
The Proparco facility is intended to support small and medium-sized enterprises (SMEs), the agricultural sector, women entrepreneurs, and local businesses involved in importing and exporting.
In a third-quarter trading update for the period to September 30, 2024, Violet Mutandwa, the company secretary said “The group, through its subsidiary NMB Bank Limited, has maintained its focus on mobilising external lines of credit to enhance production capacity for Zimbabwean companies by bridging the capital gap.”
Under a collaboration with Rabobank, a prominent leader in the food and agriculture sector, the group is implementing a comprehensive value chain strategy to enhance the agricultural ecosystem in Zimbabwe.
NMBZ said an in-depth analysis of the horticulture sector conducted during the quarter identified substantial growth opportunities, especially in increasing access to export markets in the European Union, Middle East, and Far East.
“This analysis also highlighted the need for targeted financing solutions tailored to the horticulture industry’s unique requirements, which would enable both large-scale and smallholder farmers to scale up their operations, Ms Mutandwa said.
She said the group was continually working to develop specialised financing solutions and aimed to broaden its involvement in the sector.
The group’s fintech subsidiary, XPlug Solutions, is at the forefront of Robotic Process Automation (RPA) and digital transformation initiatives for financial institutions.
According to NMBZ Holdings this service has been embraced by several major banks in the region, leading to significant cost savings and enhanced operational efficiency.
XPlug has extended its reach to five additional countries including Rwanda, Uganda, Zambia, Mozambique, and Tanzania. For the period under review, XPlug introduced a new product called the Socket SMS Gateway, which has successfully enabled businesses to send over 14 million SMS messages to their customers.
“The platform is designed to be cost-effective and easy to set up, making it accessible to businesses of all sizes and facilitating timely communication with their customers,” she said.
In terms of performance, NMBZ Holdings reported an operating income of ZiG1,3 billion reflecting a 10 percent increase compared to the restated ZiG1,2 billion recorded during the previous year.
Ms Mutandwa attributed this positive performance to a diverse range of products, higher transaction volumes, and a strong balance sheet.
“The balance sheet is anchored by US dollar-denominated assets funded by offshore credit lines supporting productive sectors of the economy.”
For the period under review, total assets reached ZiG5,5 billion, representing a 39 percent increase from ZiG3,9 billion recorded on December 31, 2023.
This growth was primarily driven by higher levels of loans and advances, as well as investment securities.
Loans and advances amounted to ZiG2,7 billion at the end of the quarter representing a 110 percent growth from December 31, 2023, and 90 percent of the loans and advances were denominated in US dollars.
During the quarter, deposits increased by 73 percent, rising from a restated ZiG1,4 billion on 31 December 2023 to ZiG2,4 billion, with 87 percent of these deposits denominated in US dollars.
According to NMBZ, the bank’s capital adequacy ratio was 30,92 percent, a mark above the regulatory minimum of 12 percent.
“The group and the bank are well capitalised and maintaining above minimum liquidity requirements.”
Going forward, NMBZ said that it would continue to focus on its core business and expand its footprint within and outside the country.
Online Reporter