Stanbic pumps US$385 million offshore credit to tobacco farmers

STANBIC Bank Zimbabwe has facilitated offshore lines of credit worth US$385 million towards supporting the growth of the tobacco sector this year as part of its commitment to capacitating the productive sector, especially agriculture.

The offshore lines of credit helped the farmers receive their sale proceeds in a timely fashion, ensuring that input costs were covered, said the bank in the latest update shared with Chronicle.

The tobacco-selling season commenced in March 2023 and before the auction floors had been opened, Stanbic Bank had pursued its strategic initiative of increasing its point of representation during the season for the convenience of tobacco farmers.

Commenting on the latest accolade awarded to Stanbic Zimbabwe, which has been named the “2023 Bank of the Year in Zimbabwe” by the globally renowned London-based magazine, The Banker, Stanbic chief executive, Mr Solomon Nyanhongo, said the institution weathered an increasingly challenging operating environment characterised by high inflation and shortage of foreign currency.

Mr Solomon Nyanhongo

He said the judges were particularly impressed by the bank’s support for the all-important agricultural sector.

“With the foreign currency shortage set to threaten the viability of the tobacco selling season and with the support of its parent company, Standard Bank Group, Stanbic arranged offshore lines of credit worth US$385m, which helped tobacco merchants fund the growing and purchasing of tobacco,” said Mr Nyanhongo.

He said through the bank’s support for the sector, more than 33 000 new accounts were opened for farmers ahead of the selling season.

As a result, Stanbic’s offshore lines of credit, contributed to the improved quality and volumes of tobacco that were delivered at auction floors.

An aggregate of 296 million kgs of tobacco was produced in 2023 up from 212 million that was delivered in the previous season.

“The award reflects not only the strength and depth of operations and skills but also the calibre of both our people and our clients in the jurisdictions in which we operate,” said Mr Nyanhongo.

“The award, therefore, is something that we can all be proud of, as we all played a part in securing it for Stanbic Bank.”

In its remarks, The Banker noted that winners of the award from various countries in Africa, Asia-Pacific and the Americas had proven their mettle in the face of economic headwinds and market volatility during the past year, developing innovative products and services, modernising their infrastructure and delivering bottom line results.

The focus on environmental, social and governance (ESG) issues was a common thread in all wining submissions.

The Banker commented that: “Sustainability is no longer a ‘nice to have’ but vital for the future success of each and every bank.”

“This year we made awards in 140 countries. We received more than 400 submissions, with the highest number coming from Africa, followed by Asia-pacific and the Americas,” said The Banker.

The award also saw five other Standard Bank Group (SBG) country banks across Africa named as African leaders in the prestigious Banker magazine’s annual global awards held in London recently.

Stanbic Bank Zimbabwe emerged as the best and was one of those selected from a field of more than 400 global entrants to win honours in the prestigious awards.

The Banker magazine is regarded as an “authoritative source” of global financial analysis and data-driven business intelligence.

The award for Stanbic Bank comes hard on the heels of four other accolades won by the financial services institution last month.

Last month Stanbic Bank Zimbabwe scooped four prestigious awards — two at the Banks and Banking Survey sponsored by financial services institution, FCB and a local publishing company, one at the Contact Centre Association of Zimbabwe (CCAZ), as well as one from ESG Network Zimbabwe. -chronicle