POSB hunts for US$10 million to support key economic sectors

POSB, one of Mutapa Investment’s subsidiaries, is hunting for an additional US$10 million line of credit to finance critical sectors of the economy, it has been learnt.

This comes on the heels of the bank’s recent securing of another US$10 million facility from Afreximbank under the African Trade Facilitation Programme (AFTRAF) scheme.

The scheme intends to provide crucial support to Zimbabwe’s main productive sectors, priming the local economy for a more competitive future.

The bank seeks to offer funding support to vital sectors such as mining, agriculture and manufacturing.

Zimbabwe’s projected economic growth is expected to be anchored on high foreign currency inflows mainly from key economic sectors like agriculture, mining and services sectors.

The intended support to productive sectors of the economy comes at a time when the Ministry of Finance, Economic Development and Investment Promotion’s 2025 budget strategy paper has projected that the mining and quarrying sector is expected to contribute 5,2 percent to the country’s GDP growth rates and 5,4 percent in 2025.

From an expected dip of 21, 2 percent in 2024 agriculture, hunting and fishing and forestry sector is expected to grow by 23,6 percent and seven percent in 2025 and 2026 respectively.

POSB also highlighted that the funding will be directed at capacitating Small to Medium Enterprises (SMEs) to contribute to economic transformation and community development.

Data say the SMES sector constitutes about 60 percent of the economy.

POSB chief executive officer, Garainashe Changunda, said the funding is meant to support productive sectors when importing essential inputs required for producing for the export market.

“We have already secured a US$10 million line of credit, but we are aiming to secure another US$10 million before the year-end. We are looking at importers if you want to import raw materials or equipment so that you produce for the export market.

“The Bank will also target projects that will improve sustainability in line with its ESG thrust. This year we are targeting a total of US$20 million in lines of credit but it depends on the appetite of our clients for credit facilities and the availability of lines of credit,” said Changunda.

All the shares were transferred to the new shareholder during the last quarter of the year 2023.

POSB remains well capitalised with a capital adequacy ratio of 57 percent and 61 percent as at 31 December 2023 and 30 June 2024 respectively.-ebsinessweel;