CABS Empowers Zimbabwe’s Key Sectors with US$110 Million Funding Boost

CABS, a division of the Old Mutual Group, received lines of credit totaling US$110 million in 2023 from AfreximBank and the Trade and Development Bank. These funds were earmarked for lending to vital sectors of Zimbabwe’s economy, including agriculture, mining, energy, and manufacturing.

In its 2023 annual report, the bank affirmed its dedication to fostering both public and private sector investment within Zimbabwe. Managing Director Mr. Mehluli Mpofu stated that CABS remained committed to securing offshore lines of credit for on-lending to sub-borrowers in key economic sectors.

During the year, CABS received a combined total of US$110 million from Afreximbank and the Trade and Development Bank. Additionally, the bank expressed its ongoing support for small and medium-sized enterprises (SMEs) through initiatives such as value chain financing and financial literacy programs.

Furthermore, CABS obtained a grant from the African Development Bank, via the Affirmative Finance Action for Women in Africa (AFAWA), to assist in the implementation of a technical assistance program aimed at developing women-led small, micro, and medium enterprises (SMMEs).

CABS also facilitated trade through the provision of trade facilities like transaction guarantees and letters of credit, benefiting both exporting and importing customers and enhancing cross-border trading efficiency.

Regarding financial literacy efforts, Mr. Mpofu highlighted the bank’s contribution through programs like Old Mutual’s on-the-money training, which imparts essential financial knowledge to current and potential customers.

In terms of financial performance, the bank witnessed a notable increase in surplus, reaching $429.27 billion in inflation-adjusted terms, primarily driven by heightened non-funded income from payment transactions across key economic segments.

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CABS’ digitalization strategy played a pivotal role in enhancing customer experience by expanding transaction channel options. The addition of US$ services to digital channels was well-received by customers, reflecting the growing demand for such services.

Furthermore, foreign currency translation gains and property fair value gains on investment property bolstered performance. The introduction and expansion of USD digital lending channels, such as EezyCredit and Flexicredit, supported CABS’ lending activities throughout the year.

Key financial indicators demonstrated robust growth, with net interest income increasing by 246 percent to $83.39 billion, and net fee and commission income surging by 1,067 percent to $139.18 billion.

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