CBZ Holdings reports solid performance in 2023, de...

CBZ Holdings reports solid performance in 2023, despite headwinds

Nyashadzashe Ndoro

Zim Now Reporter

CBZ Holdings Limited, Zimbabwe’s leading financial services group, has reported a positive performance despite global and regional economic challenges.

This is contained in the group’s financial results for the year ended December 31, 2023.

CBZH noted that the global economy witnessed a growth of 3.1% in 2023, with emerging markets like Sub-Saharan Africa experiencing a 4.13% increase. However, Zimbabwe’s growth is estimated to have slightly decelerated from 6.5% in 2022 to 5.5% in 2023. This growth was driven by strong activity in agriculture, transport, construction, and manufacturing sectors.

“This notable growth was anchored by strong activity in the agricultural, transport, construction, manufacturing, wholesale and real estate activities, which outweighed slowdowns and deadlines in mining, electricity supply, accommodation and food services, information and communication and financial and insurance services.

“The Group continued to play a pivotal role in supporting its customers in the sectors to both withstand economic headwinds as well as expand their operations," CBZH Group Chairman, Luxon Zembe said.

CBZH highlighted the country’s experience with intermittent currency weaknesses and price instabilities. The local currency depreciated against the USD throughout the year (2023).

But, the company noted that the government implemented measures like maintaining a tight monetary policy and extending the multi-currency system to December 2030 to address these volatilities.

The Group pledged its commitment to Environmental, Social, and Governance factors.

CBZH said it secured a nomination for accreditation with the Green Climate Fund and obtained ongoing certification with the European Organisation for Sustainable Development. They also engaged the International Finance Corporation for advisory services on ESG and Climate Risk Management.

“The Group hosted the 2023 CAZ marathon, attracting approximately 1 800 athletes across the country and promoting health and wellness. On the Environmental Sustainability front, the Group partnered with the Forestry Commission contributing to environmental preservation. The Group continues to actively participate in initiatives that protect and preserve the natural world for future generations and forster strong relationships with the communities through investing in their well-being and development,” Zembe said.

The Group reported a strong performance in the Zimbabwe Stock Exchange with the benchmark industrial index rising by 982%.

CBZ Holdings closed the year with a market capitalisation of ZW$1.66 trillion, ranking as the third-largest trading counter. The company's performance on the US dollar-denominated Victoria Falls Stock Exchange, however, saw a decline of 30.8%.