Stanbic Bank commits to enhancing the contribution of mining to economy

Stanbic Bank is committed to enhancing the contribution of the mining industry to the economy, an official has said.

The mining sector attracts more than 70 percent foreign direct investment, contributes 80 percent of exports receipts, 19 percent to government revenues and generates significant employment.

Speaking at a mining stakeholder engagement meeting, Stanbic Bank relationship manager for the Southern region, Denis Mazombe said the sector has remained one of the key industries expected to transform the economy.

“As a financial institution, we want to assure you that we will remain active and will continue to support the mining sector in every way possible to ensure the mining sector expands and this will in turn go a long way in transforming our economy,” he said.

Mazombe said the bank celebrates the successes which have been witnessed in the mining sector in recent years which saw productivity and revenues increase and new lithium deposits being discovered in the country.

He said going forward, there is need to focus on long term benefits which will turn all negatives recorded in recent years into positives.

According to The State of the Mining Industry Survey Report produced by the Chamber of Mines of Zimbabwe, the mining sector is expecting production to increase by 20 percent in 2024.

However, miners are unfortunately expecting profitability to go down slightly because of a number of reasons, chiefly international prices of minerals which are expected to remain subdued.

Mazombe said Stanbic was also excited by the increase in the social impact investment being implemented around mining communities across the country.

According to Chamber of Mines, mining companies are spending on average approximately seven percent of their revenue on Environmental Social Governance (ESG) matters including cleaner production technology, investment in renewable energy and reforestation and rehabilitation

programmes.

“As Stanbic Bank in that respect, we are considering funding quite a number of green power projects.

“We firmly believe generations to come should find a better environment and they should also see joint efforts in land rehabilitation between industry, banks and other stakeholders.

Mazombe said their partnership with the Industrial and Commercial Bank of China (ICBC), the world largest bank by assets, has enabled them to provide their customers with direct access on one of the strongest economies.

“As you also might be aware, we are owned 20 percent by Industrial and Commercial bank of China which is the world`s largest bank by assets,” he said.

“Our partnership with ICBC has resulted in a powerful and strategic collaboration that enables us to provide our customers with direct access on of the strongest economies, that is China. – New Ziana