NEDBANK Zimbabwe has secured a US$25 million facility from its South African parent, Nedbank Group, to bolster funding for the country’s export-oriented businesses.
The facility, signed in 2024, is structured on commercial terms linked to the secured overnight financing rate and is repayable in quarterly instalments. It is renewable subject to annual review.
As at June 30, 2025, the bank had drawn down US$7,1 million, slightly down from US$7,3 million at the end of 2024.
Nedbank said the facility provides additional headroom for exporters at a time when foreign currency credit remains constrained.
“In 2024, the bank entered into an agreement with the Nedbank Group for a facility of US$25 million,” Nedbank Zimbabwe said in its half-year financial results.
“The loan was obtained on commercial terms with an interest rate calculated as a percentage of applicable secured overnight financing rate and is payable in quarterly instalments.
“The terms and conditions of the loan, including the interest rate and repayment terms, are comparable to those that would be available to the bank from an unrelated party lender.
“The loan facility was arranged to support exporting clients. The facility is renewable subject to annual review. As at 30 June 2025, the bank had drawn down US$7,1 million (December 2024: US$7,3 million,” it added.
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The move aligns with a broader trend in Zimbabwe’s financial services sector, where peers are aggressively mobilising offshore resources to sustain lending to productive sectors.
CBZ Holdings, for instance, told analysts it plans to expand its loan book to US$500 million within the next 12 months, up from US$367 million at mid-year, translating into a 16% market share.
Several other lenders have also signalled intentions to grow their pipelines.
For Nedbank Zimbabwe, the undrawn balance under the facility offers scope to ramp up credit in the second half of the year, complementing strong organic growth.
Loans and advances rose 23% in the first half of 2025 to ZiG2,9 billion, from ZiG2,3 billion in December 2024.
“Net interest income rose 172% in the first half of the year compared to the same period prior year, driven by a 23% increase in gross loans and advances to ZiG2,9 billion from ZiG2,3 billion in December 2024,” Nedbank managing director Sibongile Moyo said.
“The bank’s total assets grew by 20% to ZiG6,2 billion led by a 27% increase in customer deposits to ZiG4,1 billion.
“The deposit growth funded the 23% growth in loans and advances. Credit quality remained strong, with a non-performing loan (NPL) ratio of 1,52% and a credit loss ratio (CLR) of 1,29%,” she added.
The loan book expansion has been underpinned by the solid balance sheet, with liquidity at 38% against a 30% regulatory minimum and capital adequacy at 22% compared to the 12% requirement.
This signals the bank’s capacity to absorb new external funding without straining stability.
However, profitability pressures remain, with return on equity at 14%, reflecting narrower interest margins on predominantly US dollar assets, capped fees on low value accounts, persistent technology costs.
“Total shareholders’ funds closed the period at ZiG1,4 billion, equivalent to US$52,3 million, with a capital adequacy ratio of 22%, well above the regulatory requirement of 12%,” Moyo said.
“Regulatory core capital at ZiG1,2 billion, equivalent to US$46,7 million as at 30 June 2025, was well above the regulatory minimum capital of US$30 million.”
Exchange rate was US$1:ZiG26,73 on Monday.
