Business / Companies
Norsad Capital provides CABS Zimbabwe with a Medium-term Credit facility of USD10 million
21 Nov 2022 at 04:51hrs | Views
Carol-Jean Harward - Investment Director at Norsad Capital
Norsad Capital, an impact investor, and private creditor provider, offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa, has provided Central Africa Building Society (CABS) Zimbabwe, (a member of the Old Mutual Group), a USD10 million Credit Facility to support the bank's growth strategy. The facility is earmarked towards lending to CABS' export clients, particularly in the agricultural sector.
CABS is one of the top three banks in Zimbabwe and was established as a building society in 1949 before being granted approval by the Reserve Bank of Zimbabwe (RBZ) in 2011 to engage in full commercial banking operations. CABS has 38 operational branches, over 900 Agents, and the largest Point of Sales machine network of about 25,000 countrywide. This adds to its digital banking offering which includes Mobile, Internet, and WhatsApp Banking. The agricultural sector is key to Zimbabwe's economy for domestic production, exports, and employment; hence, Norsad's facility supports sustainable livelihoods and builds a better Africa by impacting lives.
Carol-Jean Harward, Investment Director at Norsad Capital and transaction lead said: "This investment aligns with Norsad's sectoral theme of Financial Institutions as well as the impact focus on financial inclusion and sustainable livelihoods. The transaction will capacitate the exporting industry by providing working capital and capital expenditure facilities to sectors in agriculture and manufacturing. We are excited to partner with CABS as it plays a catalytic role in unlocking opportunities to enable local farmers and SMEs to export both regionally and internationally."
Cecil Ndoro, Deputy Managing Director of CABS said: "Norsad's funding will help strengthen CABS' balance sheet by providing medium-term funding as well as capacitating the exporting industries by providing working capital and capital expenditure facilities, thus boosting the country's foreign currency earnings. As CABS, we will deploy the funds to the productive export sectors, notably agriculture, manufacturing, mining, and tourism. The focus will be on generation of foreign currency, creation of employment and value chain financing for the benefit of industry players and the economy at large. The investment will promote entrepreneurship, enable growth, and improve livelihoods."
CABS is one of the top three banks in Zimbabwe and was established as a building society in 1949 before being granted approval by the Reserve Bank of Zimbabwe (RBZ) in 2011 to engage in full commercial banking operations. CABS has 38 operational branches, over 900 Agents, and the largest Point of Sales machine network of about 25,000 countrywide. This adds to its digital banking offering which includes Mobile, Internet, and WhatsApp Banking. The agricultural sector is key to Zimbabwe's economy for domestic production, exports, and employment; hence, Norsad's facility supports sustainable livelihoods and builds a better Africa by impacting lives.
Cecil Ndoro, Deputy Managing Director of CABS said: "Norsad's funding will help strengthen CABS' balance sheet by providing medium-term funding as well as capacitating the exporting industries by providing working capital and capital expenditure facilities, thus boosting the country's foreign currency earnings. As CABS, we will deploy the funds to the productive export sectors, notably agriculture, manufacturing, mining, and tourism. The focus will be on generation of foreign currency, creation of employment and value chain financing for the benefit of industry players and the economy at large. The investment will promote entrepreneurship, enable growth, and improve livelihoods."
Source - Agencies
