UK's BII Injects US$10 Million into NMBZ to Bolste...

UK's BII Injects US$10 Million into NMBZ to Bolster Growth

Nyashadzashe Ndoro

Chief Reporter

NMBZ Holdings Limited has received a significant boost after securing a US$10 million loan from British International Investment, UK's development finance institution, providing much-needed capital amidst Zimbabwe's challenging economic environment.

The investment is expected to propel growth in the second half of the year, according to NMBZ Holdings Limited's Chairman Pearson Gowero. The company's unaudited financial results for the six months ended June 30, 2024, reflected the difficult operating environment.

Zimbabwe's economy has faced significant headwinds, including a volatile exchange rate and notable deterioration of the local currency. However, the introduction of a new structured currency, ZWG, backed by a basket of mineral commodities and US dollar reserves, has stabilised the exchange rate according to Gowero.

Despite these challenges, NMBZ Holdings Limited said it maintained a strong capital adequacy ratio of 34.45%, exceeding the regulatory minimum of 12%. The company's liquidity position consistently surpassed the statutory minimum requirement of 30%.

The loan from BII will support NMBZ's focus on sustainability, client engagement, and fundraising initiatives. Key sectors expected to drive economic growth include accommodation and food services (12%), wholesale and retail (5.8%), mining (5.2%), and construction (6.2%).

NMBZ Holdings Limited's financial performance showed operating income of ZWG 688 million, down from ZWG 1.14 billion in the comparative period. Fees and commission income remained flat, while net interest income decreased due to the recalibration of the local currency loan book.

Total assets stood at ZWG$3.5 billion, down from ZWG$3.9 billion, largely due to a reduction in investment property values. Loans and advances decreased to ZWG$1.1 billion from ZWG$1.2 billion.

The company said remained committed to its strategy, focusing on sustainability, client engagement, and fundraising initiatives to navigate Zimbabwe's challenging economic environment.