THE coming on board of Zandile Shaba to head BancABC in March last year seems to be just what the doctor ordered.
Not only has she come up with strategies to ensure that the bank remains a stable financial institution but she has also complemented efforts that chief executive Douglas Munatsi, her predecessor Joe Sibanda, and shareholders had been making over the years. Â
The bank said the dollarisation of the economy presented huge prospects for the group and management was working on strategies to capitalise on opportunities.
Last week the bank said shareholders agreed to liquidate the portfolio of equity and real estate assets in Zimbabwe to meet the groupâ€™s growth requirements.
The proceeds of the sale are expected to meet the groupâ€™s funding needs. This new development has seen the financial institution postponing the planned rights issue and a drawdown on the US$25 million loan facility BancABC had obtained.
In a statement accompanying the companyâ€™s results for the six months ended June 30, 2009, BancABC said the board had decided that the portfolio of equity and real estates originally acquired for capital preservations in Zimbabwe be selectively and orderly liquidated to fund the groupâ€™s growth requirements.
During the period under review, the groupâ€™s balance sheet increased marginally from BWP4 billion as at 31 December 2008 to BWP 4,1 billion. The groupâ€™s balance sheet grew by 24% year on year to June 2009.
The deterioration in market conditions in Botswana, Tanzania and Zambia in 2009, coupled with liquidity challenges experienced in Tanzania and Zambia resulted in the group loan book declining by 4% to BWP 2,1 billion since December 2008. Zimbabwean revenue was lagging behind as the economic output is coming off a very low base.
Fair value gains on investment properties in Zimbabwe also declined from BWP 33 million in June 2008 to a BWP 12 million loss in June 2009. Zimbabweâ€™s contribution to expenses increased by 5% to 14% in 2009, following dollarisation of the economy.
BancABC also said the International Finance Corporation had agreed to disburse at least 50% of the convertible US$13,5 million loan immediately, subject to the amendment of the original agreement.