Online Reporter
Business Correspondent
THE banking sector has a key role to play in supporting the growth of the tourism sector by offering a variety of products that unlock new opportunity and assist the industry to contribute more to the economy, Stanbic Bank Zimbabwe has said.
Regarded as the low-hanging fruit given its wider community impact in uplifting livelihoods, the tourism sector is one of Zimbabwe’s key economic drivers.
However, the growth of the sector has over the years been hampered by lack of loan facilities that can be accessed by the tourism sector, such as asset financing for vehicles, and equipment, working capital loans to support operational needs during peak and off-peak seasons, including standby facilities; and infrastructure development loans for expansion projects.
Stanbic Bank says it has seen huge opportunity for collaboration in the sphere hence it has participated in a number of hotel upgrades, fresh upstarts and syndicated loan arrangements.
By offering loan facilities to tourism industry players, and a strategic role in helping tourism businesses manage currency and investment matters, among many other products, Stanbic Bank executive director, corporate and investment banking (CIB), Betty Murambadoro, says the Standard Bank Group subsidiary has become part of the drive to deliver solutions that are responsive to industry and sector-specific needs, with a deep understanding of sector cycles guiding its structuring approach.
“We value open dialogue and collaboration, enabling us to tailor-make financial structures and solutions that truly align with our customers’ evolving requirements,” she said.
“Our approach is not just transactional, it’s adaptive,” said Murambadoro.
Citing Stanbic’s intervention during the COVID-19 pandemic, Murambadoro said Stanbic Bank recognized the unique challenges faced by the tourism sector and responded with accommodative and flexible solutions that supported recovery and resilience.
She said the bank was committed to playing a strategic role in helping tourism businesses manage currency and investment matters through multi-currency accounts that allow businesses to transact in United States dollars (USD), Euro (EUR), South African Rand (ZAR), and other major currencies.
Murambadoro said the institution also offers foreign exchange advisory services to help manage volatility and optimize conversion timing, as well as Cross-border trade financing.
“These services are designed to help tourism operators remain competitive and resilient in a globalized market. We are very mindful that some of our clients are venturing into countries across the region where Stanbic Bank has representation and we get involved at the early stages of Exchange Control,” she said.
“We encourage Tourism Operators to take advantage of our footprint across Africa and call on us to assist them to enter those markets. In terms of Foreign Exchange challenges, we have a fully-fledged Treasury function in the bank that supports currency switches across different international currencies. A case in point includes the introduction of trading in Renminbi (RMB) settlements a few years ago,” said Murambadoro.
Stanbic Bank Vice President, Telecoms and Tourism, Vongai Mhazo urged players in the tourism sector to also take advantage of the recently secured €20 million credit line from the European Investment Bank.
While the facility is broadly targeted at SMEs and women-led businesses, Mhazo it can also be accessed by tourism-related enterprises adding that the facility provides access to affordable credit with extended tenors.
“The facility can be accessed by tourism-related enterprises, especially those owned or led by women as well as SMEs, with special consideration for those businesses, which employ a significant number of women or offer services specifically to women,” said Mhazo.
She said Stanbic Bank’s commitment to tourism is epitomised by the institution’s involvement in key events in the sector, which aligns with its broader strategy to promote sector-wide collaboration, support ecosystem development, as well as champion financial inclusion and innovation across economic sectors.
“We have seen the opening up of new business opportunities and new clients that we will on-board as a result of our participation,” said Mhazo.
