Sky’s the limit for ZABG

million then for commercial banks(since revised to US$100 by June 2014), given the little time that had left before the lapse of the central bank deadline.
But Trebor and Khays, a local investment firm owned by Mines and Mining Development Minister Obert Mpofu came to ZABG’s rescue by injecting US$22,8 million.
This was after the collapse of a series of negotiations between the bank and potential investors.
The bank’s capital base grew from a negative US$10,8 million and is now capitalised to the tune of about US$18 million. This marked the rebirth of the once troubled bank.
Last Friday, the bank officially launched its 23rd branch in Victoria Falls where Reserve Bank of Zimbabwe Governor Dr Gideon Gono was the guest of honour.
Describing the renaissance of the bank, Dr Gono said: “This is the first time that a bank which was facing closure in January this year finds itself — six months later — among the now very strong banks not only financially but to the point of expanding when others are battling to survive and indeed, closing branches and making losses.”
The fresh capital injection has boosted the bank’s underwriting capacity and its balance sheet. Speaking at the same occasion, ZABG chairman Mr Farai Mutamangira talked about a journey that the bank has just started in view of transforming it into one of the leading and strong financial institutions in the country.
Mr Mutamangira, a renowned lawyer, said the bank was finalising a loan facility of up to US$10 million to support small-scale gold miners. This was in recognition of the critical role played by small to medium-scale enterprises in the economy.
This facility will assist mining companies in acquiring machinery and equipment in their mining activities among other services. Apart from the loan facility, Mr Mutamangira said ZABG was also in the process of establishing a gold trading facility that would go a long way in enhancing production.
And to add convenience to the banking public, the bank will soon start installing deposits auto teller machines which will enable customers to make cash deposits through ATMs.
The bank will also roll out “cash to cash” payments, a facility that will enable any person, not necessarily ZABG account holders, to send and receive money through the bank.
With an estimated US$3 billion believed to be circulating in the informal sector, ZABG is working on products that will encourage deposits from the sector.
In addition, it will develop electronic products that will facilitate access to the unbanked sector.
With regard to the central bank’s new capital thresholds, Mr Mutamangira said the bank was not only prepared to meet the new requirements of US$100 million by 2014, but to “exceed” them.
He said the bank has already started working on equity initiatives that would see it exceed all the deadlines that were set, further expressing confidence that the initiatives would begin yielding positive results in the short term before the December deadline.
Last month, the RBZ raised minimum capital requirements for all financial institutions, with commercial bank required to have a minimum capital base to US$100 million from US$12,5 million on a phased basis to 2014.
Mr Mutamangira also expressed satisfaction on the performance of the bank. He said the Victoria Falls branch had received enormous support since opening its doors to the banking public at the beginning of August this year. ZABG chief executive Mr Stephen Gwasira said the opening of the branch was part of its growth and repositioning plan. He said the bank would expand its branch network and was targeting towns such as Masvingo, Beitbridge and Zvishavane.
ZABG was unbundled in 2010 from an amalgamation of Trust Bank, Barbican Bank and Royal Bank.
With a branch network of 23, ZABG is offering a variety of financial services, encompassing retail banking, wholesale banking, corporate advisory services, treasury, asset management and leasing finance. Products on offer also include internet banking, SMS banking, personal and corporate loans, specialised banking services for small to medium-size enterprises and Dstv subscriptions.