NMBZ Holdings, a leading banking group, is in the process of negotiating three new lines of credit totaling US$75 million to support critical sectors of Zimbabwe’s economy, including agriculture.
While the group has not disclosed the funding sources, it revealed that discussions are at various stages of progress. This follows NMBZ Bank’s recent success in securing a US$25 million facility from Proparco, the French Development Finance Institution.
The Proparco funding aims to empower small and medium-sized enterprises (SMEs), women entrepreneurs, and local businesses engaged in agriculture and international trade.
In a third-quarter trading update for the period ending September 30, 2024, NMBZ Holdings’ company secretary, Violet Mutandwa, emphasized the group’s commitment to sourcing external credit lines to boost Zimbabwean companies’ production capacity.
“The group, through its subsidiary NMB Bank Limited, has maintained its focus on mobilizing external lines of credit to enhance production capacity for Zimbabwean companies by bridging the capital gap,” she said.
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In collaboration with Rabobank, a global leader in food and agriculture financing, NMBZ is advancing a comprehensive value chain strategy to strengthen Zimbabwe’s agricultural ecosystem.
An analysis of the horticulture sector during the quarter revealed significant opportunities for growth, particularly in accessing export markets in the European Union, Middle East, and Far East.
“This analysis also highlighted the need for targeted financing solutions tailored to the horticulture industry’s unique requirements, enabling both large-scale and smallholder farmers to scale up operations,” Mutandwa added.
The group’s fintech subsidiary, XPlug Solutions, continues to lead in Robotic Process Automation (RPA) and digital transformation for financial institutions.
XPlug’s services have been adopted by several major banks across the region, yielding substantial cost savings and operational efficiency. It has expanded into five additional countries: Rwanda, Uganda, Zambia, Mozambique, and Tanzania.
During the review period, XPlug launched the Socket SMS Gateway, enabling businesses to send over 14 million SMS messages to customers. The cost-effective and user-friendly platform facilitates timely communication for businesses of all sizes.
NMBZ Holdings reported robust financial growth, with operating income increasing by 10% to ZiG1.3 billion compared to ZiG1.2 billion the previous year. This growth was attributed to a diverse product portfolio, increased transaction volumes, and a solid balance sheet supported by US dollar-denominated assets.
The group’s total assets surged by 39% to ZiG5.5 billion, driven by higher loans and advances, as well as investment securities. Loans and advances more than doubled, reaching ZiG2.7 billion, with 90% denominated in US dollars. Deposits also grew significantly, rising by 73% to ZiG2.4 billion, with 87% in US dollars.
The bank’s capital adequacy ratio stood at an impressive 30.92%, well above the regulatory minimum of 12%.
“The group and the bank are well-capitalized and maintaining above-minimum liquidity requirements,” Mutandwa noted.
Looking ahead, NMBZ Holdings plans to maintain its focus on core business activities while expanding its footprint both locally and regionally. With targeted investments in agriculture, innovative financial solutions, and a strong fintech presence, the group aims to continue driving economic growth and supporting key sectors in Zimbabwe.
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