POSB secures US$10m facility for key sectors

Mike Tome

Business Reporter

MUTAPA Investment Fund subsidiary, POSB Bank, has secured a US$10 million line of credit from the African Export and Import Bank (Afreximbank) to support key productive sectors. 

This comes as POSB plans to mobilise at least US$20 million worth of credit lines during the 2024 financial year, depending on client demand.

The US$10 million loan was extended under Afreximbank’s African Trade Facilitation (AFTRAF) window, which primarily supports importers, benefiting both small and medium enterprises and large corporations through non-funded options. 

The facility aims to provide crucial support to Zimbabwe’s key productive sectors, preparing the domestic economy for a more competitive and resilient  future.

POSB said the funding would support targeted vital sectors like mining, agriculture and manufacturing, as well as SMEs, contributing significantly to economic transformation and community development. 

Chief executive officer (CEO) Mr Garainashe Changunda stated that the funding would support productive sectors in procuring critical raw materials for export markets and target projects improving environmental, social and governance programmes.

“The bank has secured US$10 million from Afreximbank under the Trade Facilitation Programme (AFTRAF). 

This facility will support critical imports of goods and services into Zimbabwe and assist in importing equipment to enhance production and value addition of export goods,” said Mr Changunda.

Operationally, POSB posted a net profit of $110 billion during the year to December 2023, a growth from $11,3 billion in the prior year period. 

For the trading period to March 2024, POSB posted a net profit of $259,20 billion against a budgeted profit of $76,79 billion, declaring a dividend of US$589 341 to the shareholder.

POSB remains well-capitalised, with a capital adequacy ratio of 57 percent and 61 percent as at 31 December 2023 and 30 June 2024, respectively. 

Mutapa Investment Fund CEO Dr John Mangudya, who was represented by deputy chief investments officer Mr Ernest Denhere, commended POSB for its remarkable performance, achieved against a difficult economic   environment.