NEDBANK Zimbabwe Ltd says it will provide trade financing facilities amounting to US$140 million to support the local economy and help ease an import financing problem in the economy.
The financial institution secured lines of credit amounting to US$75 million from its parent company, Nedbank Group, for a pre and post-shipment facility for trade finance. The trade finance facility was unveiled in 2018 at a concessionary interest rates payable over six to 12 months, based on the export orders and/or outstanding CD1s (export debtors).
Nedbank Zimbabwe also has a US$15 million tobacco pre and post-shipment facility, a US$15 million Nedbank group tobacco pre and post-shipment and a US$35 million facility for letters of credit for facilitation of imports of strategic commodities.
Nedbank corporate banker (wholesale banking division) Norman Gambiza on Tuesday said while the country was witnessing a period of strong headwinds, he believed Zimbabwe still presented some good opportunities.
Gambiza, who was speaking at the Zimbabwe Independent’s Quoted Companies Survey ceremony added that the bank was now strongly footed after growing its client base and branch network as it continues to explore more opportunities for growth particularly in digital innovation. “We recently launched a branch in Victoria Falls Sawanga Mall and this is in line with our banking services at strategic locations around the country. We all have a part to play and the challenge is for us to be at the forefront of finding solutions to grow our economy. Nedbank’s credence to finding these solutions is evidenced through our ongoing support for the business community through extension of lines. Corporate governance and transparency are in the guiding principles that we live by,” he said.
The banking sector has however been facing challenges especially over repayment of credit lines in the face of a volatile economy where borrowers have been failing to meet their obligations.
The manufacturing sector has remained the driver of the productive sector although it is battling serious problems.
For the year ended December 31, 2018, Nedbank Zimbabwe reported an 82% jump in profit after tax, driven by a growth in non-interest income of US$25,3 million from US$17,9 million recorded in the prior year.
The bank made US$14,34 million profit in the same period, up from US$7,89 million in the same period a year earlier.