CABS Zimbabwe secures $10 million loan to support growth strategy

Central Africa Building Society (CABS) Zimbabwe, a member of the Old Mutual Group, has secured a $10 million credit facility from Norsad Capital.

The impact investor and private creditor provider approved the loan to the bank to support its growth strategy, as the funds would be used to provide loans to CABS Zimbabwe’s export clients, particularly in the agricultural sector.

“This investment aligns with Norsad’s financial institutions sector theme, as well as its focus on financial inclusion and sustainable livelihoods impact,” said Carol-Jean Harward, chief investment officer and transaction leader at Norsad Capital. .

“The transaction will empower the export industry by providing working capital and capital expenditure facilities to the agriculture and manufacturing sectors.

“We are excited to partner with CABS as they play a catalytic role in unlocking opportunities to enable local farmers and SMEs to export both regionally and internationally,” he added.

In his remarks, CABS Deputy Managing Director Mr. Cecil Ndoro said: “The funding from Norsad will help strengthen CABS’s balance sheet by providing medium-term financing and empower export industries by providing working capital and facilities. of capital spending, thus boosting the country’s foreign exchange earnings.

“As CABS, we will deploy the funds in the productive export sectors, in particular agriculture, manufacturing, mining and tourism.

“The focus will be on the generation of foreign exchange, job creation and financing of the value chain for the benefit of the players in the industry and the economy in general. The investment will promote entrepreneurship, enable growth and improve livelihoods.”

CABS is one of the three largest banks in Zimbabwe and was established as a building society in 1949 before receiving approval from the Reserve Bank of Zimbabwe (RBZ) in 2011 to engage in full commercial banking operations.

The lender has 38 operating branches, more than 900 agents, and the largest network of POS machines of around 25,000 across the country. This is in addition to its digital banking offer, which includes Mobile Banking, Internet and WhatsApp.

The agricultural sector is key to the Zimbabwean economy for domestic production, exports and employment; therefore, Norsad facilities support sustainable livelihoods and build a better Africa by impacting lives.

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