CBZ Holdings to closely monitor global commodity price movements
Financial services group — CBZ Holdings Limited (CBZ) — has indicated that it will closely monitor global commodity price movements, especially for base metals and platinum group metals (PGMs) to promptly identify and address emerging risks and opportunities.
The price of platinum, a key component in catalytic converters used by automakers, has seen a significant drop since April 2023.
This is largely attributed to weaker economic growth in China.
In its financial year ended December 31, 2023, CBZ chairman Mr Luxon Zembe said due to global commodity price volatility and El Niño-induced drought this year, it will closely monitor movements to strategise better to protect its gains from 2023.
“In 2024, the IMF (International Monetary Fund) expects global growth to remain flat at 3.1 percent, with the risks to the outlook largely balanced. Sub-Saharan Africa is expected to recover to 3.8 percent.
“In Zimbabwe, however, the Government expects growth to moderate further to 3.5 percent as the adverse effects of the El Niño effect become more pronounced, particularly on the agricultural and related sectors.
Relatively strong performance is, however, still expected in the mining, accommodation and food services, and wholesale and retail trade sectors.”
Mr Zembe noted that the downside risks to the growth projections include, among others, prolonged weak commodity prices, especially for base metals and PGMs, potential further disruptions to supply chains and trade flows, and currency weaknesses.
“The Group will continue to monitor these developments for quicker detection of, and response to, emerging risks and opportunities.”
Mr Zembe said in the period under review, the institution continued to play a pivotal role in supporting its customers in various sectors to both withstand economic headwinds and expand their operations.
He mentioned that despite the relatively strong growth and elevated foreign currency inflows through Diaspora remittances, the economy experienced intermittent currency weaknesses and price instabilities during the period under review.
“To address these market volatilities, the authorities introduced a number of monetary and fiscal measures, including enhancement of the tight monetary policy stance, standardisation of the exports retentions, and an extension of the multi-currency system to December 2030.
“In particular, the extension of the multi-currency system to 2030 provided the much-needed policy clarity and consistency for the given period, thereby enabling the Group to effectively underwrite long-term products.”
The Group continued to leverage its strong investment in intellectual, manufactured, and financial capital to continuously develop and offer solutions that satisfy the needs of its wide range of clients.
This included enhancing products and mobilising external lines of credit to better meet the loan requirements of the industry.-chronicle
