NMBZ turns to Rabobank for agric financing

Zimbabwe is becoming increasingly exposed to climate risks with the country recording one of its worst droughts in 40 years during the 2023/24 agricultural season.
FINANCIAL services group, NMBZ Holdings Limited, has partnered Dutch multinational banking and financial services company, Rabobank, for an end-to-end value chain approach to bolster Zimbabwe agricultural ecosystem.

Zimbabwe is becoming increasingly exposed to climate risks with the country recording one of its worst droughts in 40 years during the 2023/24 agricultural season.

In its trading update for the 9 months ended September 30 2024, NMBZ said the partnership would result in financing solutions being formed for local farmers.

“In partnership with Rabobank, one of the global leaders in food and agriculture, the group is working on an end-to-end value chain approach to bolster the Zimbabwean agricultural ecosystem,” NMBZ said.

“A horticulture sector deep dive conducted during the quarter revealed significant growth potential, particularly in expanding access to export markets such as the European Union, Middle East and the Far East. This analysis also highlighted the need for targeted financing solutions tailored to the horticulture industry’s unique requirements, which would enable both large-scale and smallholder farmers to scale up their operations.

“The group continues to make progress in unlocking these tailored financing solutions and is looking forward to increasing its footprint in the sector.”

The group revealed that through its subsidiary NMB Bank Limited, it maintained its focus on mobilising external lines of credit to enhance production capacity for local companies by bridging the capital gap.

“Recently, NMB Bank secured a US$25 million facility with Proparco, a French development finance institution,” NMBZ said.

“The facility will support SMEs, the agriculture sector, women entrepreneurs, local importing and exporting businesses. Three other additional credit lines with a value of US$75 million are at various stages of discussion.”

NMBZ said it would continue to focus on its core business and expand its footprint within and outside the country.

“Capital adequacy ratio for the bank as at 30 September 2024 stood at 30,92% compared to a regulatory minimum of 12%,” NMBZ said.

They showed that the group was well capitalised.

Total assets amounted to ZWG5,5 billion as at September 30, 2024, an increase of 39% from last year, due to increases in loans and advances and investment securities.

“Loans and advances amounted to ZWG2,7 billion at the end of the quarter representing a 110% growth from 31 December 2023 and 90% of the loans and advances were denominated in USD,” NMBZ said.

Operating income of ZWG1,3 billion for the nine months ended September 30, 2024, was realised signifying a 10% increase from the comparative 2023 period.

“The positive performance was driven by the diversified product offering, increased transaction volumes and a strong balance sheet,” NMBZ said.

“The balance sheet is anchored by US dollar-denominated assets funded by offshore credit lines supporting productive sectors of the economy.”-newsda