ABC Holdings' plans to rollout microfinance services in Zimbabwe

ABC Holdings' plans to rollout microfinance services in Zimbabwe are at an advanced stage, the microfinance division is expected to hit the market during the second half of the year, Group officials have said.

Last year Doug Munatsi Chief Executive Officer of ABC Holdings its Bank wing – Banc ABC remained bullish about its Zimbabwean investments despite the current growth challenges facing the country's economy.

Zimbabwe's economy is projected to grow by 9,3% this year and double digit growth in 2012.

Speaking in Gaborone at the announcement of the bank's full year financial results, the Group's officials said a team is already on the ground in Zimbabwe, ready to operate the microfinance wing.

"We think there is room for us to play in the microfinance segment. We should be rolling that second half of the year," said Francis Dzanya Group Chief Operating Officer.

Sharing the same sentiments Group Chief Executive Officer Douglas Munatsi said: "We are preparing the system and still debating on whether to use the same branch network with the retail banking."

Munatsi said the bank is pursuing getting a deduction code for civil servants in Mozambique, adding that the Group is upbeat on rolling microfinance in the ABC market – Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.

ABC Holdings put on hold plans to extend micro-finance business into Zimbabwe over the last two years citing the sub standard salary scale for government employees.

In Zambia the Group has a robust micro-finance division with a loan book of over 60 000 customers in 17 outlets across the country.

Meanwhile ABC Holdings' banking operations, under the flagship BancABC reported profit for the first time in the history of the Group, recording an operating profit of 111million pula, marking an increase by 327%.

"These are pleasing results bearing where we are coming from," said Dzanya.

The Group is banking on Zimbabwe and Zambia to keep afloat the impressive performance in the coming year.

"There is real significant growth coming through that should propel growth in our business. Zimbabwe has come out well and should compete with Zambia, they are huge opportunities for the Group in those markets," Dzanya said.

"Zimbabwe has grown rapidly and should continue to grow unless if we have political challenges."

He said the Group's business is now solid and transforming to be a serious player.