Sundaymail Editor
Michael Tome
ZB Financial Holdings (ZBFH) says it has set aside funding to support small-scale productive sectors of the economy in line with its rebranding strategies as it moves to support Government’s vision of attaining a middle-income economy by 2030.
According to ZBFH, the funding, which will be disbursed as loans, is aimed at stimulating economic growth in critical sectors of the economy, while addressing financing gaps in mining, agriculture and tourism.
This is a commendable initiative as the country gears towards bolstering productive sectors of the economy, particularly agriculture and mining.
Agriculture remains the mainstay of the Zimbabwean economy and, according to the World Bank, it contributes over 60 percent of raw materials to local agro-industries, with more than 70 percent of the county’s population deriving livelihoods from the sector.
On the flip side, mining industry exports account for about 60 percent of Zimbabwe’s export earnings, thus contributing significantly to the national GDP.
Although ZBFH could not divulge the amount meant to support the initiative, it said that the funding is set to develop eligible investment projects undertaken mainly by small and medium enterprises (SMEs).
In an interview, ZBFH chief executive Shepherd Fungura said his company’s intention to extend funding stems from the need to participate in nation-building initiatives.
“One of the key tenets of our rebranding is extending our hand to the development of key sectors of the economy, like mining, agriculture and tourism.
“We are going to support those sectors by way of providing facilities like working capital for mines, millers within the mining industry and maybe contract farming schemes for those who are doing agriculture.
“We want to be a good corporate citizen in the manner which we do our business. We want to support Government efforts in sectors like mining and agriculture to make sure that even Vision 2030 is also realised,” said Mr Fungura.
This type of funding is critical in the retooling of local productive sectors. It improves their ability to invest in new technologies that allow local sectors to keep abreast with international trends.
Recently, while exhibiting at the just-ended Confederation of Zimbabwe Industries conference, ZBFH brand manager Gladys Mubaiwa said the bank had rebranded and was now moving towards offering tailor-made solutions to its growing clientele.
“As an institution, our new mantra is ZB for you. One of the key elements we want to focus on is financial literacy and growth as far as our SMEs are concerned, where we will discuss the growth strategies so that we do not create products and solutions on our own but listen to our customers,” she said.
This comes at a time when First Capital Bank and NMB received €12,5 million loan facilities that are meant to fund businesses across the country.
The European Investment Bank (EIB) loans came with a tenure of seven years, and NMB chief executive Gerald Gore recently revealed that it is already scouting for more lines of credit to cater for the huge demand coming from its exporting clientele.
Most of the funds from the bank were channelled towards horticulture farmers who export their produce, and some towards the manufacturing sector in line with the country’s objective to improve foreign currency generation by various sectors of the economy.
Online Reporter