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Business Writer
ZB Financial Holdings will this year focus on lending to export-oriented businesses as the local market is running out of quality debtors, chief executive officer Ron Mutandagayi told Business Weekly.
Mutandagayi said the financial institution will use credit lines obtained from the Afreximbank to target exporters who market watchers believe have a better chance of servicing their loans.
The move to target export-oriented businesses comes at a time local businesses are faced with a depreciating local currency, which has affected their ability to meet foreign currency denominated obligations.
The Zimbabwe dollar is trading at 17 times to the US dollar forcing local businesses to index prices to the US dollar but beyond the reach of customers.
This has reflected in falling sales volume and in the process crippling the ability of businesses to service loans.
Mutandagayi said the bank will also focus on cost containment and improve on efficiencies in order to secure the sustainability of operations in the future.
The financial services sector has not been spared from escalating operating costs and Mutandagayi believes there is need to keep an eye on that aspect of business.
In its last update for the nine months to September 30, 2019, ZB said operating expenses increased by 109 percent from $41,7 million to $86,9 million.
This cost out-turn, the banking Group said, is below inflation principally because increases in salaries and wages have lagged behind year-on-year inflation, last reported as 175,66 percent as at June 30, 2019.
Mutandagayi said other focus areas would be putting in place systems and processes that enable the bank to earn more fees and commissions.
Bongani Ndlovu