News / National
NMBZ turns to Rabobank for agric financing
19 Nov 2024 at 08:49hrs | Views
NMBZ Holdings Limited, a leading financial services group, has announced a strategic partnership with Rabobank, a Dutch multinational specializing in banking and financial services, to implement an end-to-end value chain approach aimed at strengthening Zimbabwe's agricultural ecosystem. The partnership is expected to offer tailored financing solutions to local farmers, addressing the country's increasing exposure to climate risks.
In its trading update for the 9 months ending September 30, 2024, NMBZ highlighted the importance of this collaboration, particularly after Zimbabwe faced one of its worst droughts in 40 years during the 2023/24 agricultural season.
According to NMBZ, the partnership with Rabobank will help provide comprehensive financial solutions to support both large-scale and smallholder farmers across the country. "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," the financial group said.
The update further revealed that an in-depth analysis of the horticulture sector identified significant growth opportunities, especially in export markets such as the European Union, Middle East, and the Far East. The analysis stressed the need for financing solutions that cater specifically to the horticulture industry's unique requirements, which will help farmers scale up operations.
NMBZ added that it is actively working on unlocking financing options tailored to the sector's needs, aiming to expand its footprint in this vital area of the economy.
As part of its efforts to support Zimbabwe's agriculture and other key sectors, NMBZ's subsidiary, NMB Bank Limited, has been mobilizing external lines of credit to enhance local production capacity. The bank recently secured a US$25 million facility from Proparco, a French development finance institution. This funding will be directed towards supporting SMEs, women entrepreneurs, and businesses involved in both importing and exporting.
In addition, NMBZ disclosed that three additional credit lines valued at US$75 million are currently under negotiation to further support the growth of Zimbabwe's economy.
For the period ending September 30, 2024, NMBZ reported solid financial results, with a capital adequacy ratio of 30.92%, well above the regulatory minimum of 12%, signaling a robust financial position. Total assets for the group increased by 39%, reaching ZWG5.5 billion, driven by growth in loans and advances and investment securities. The bank's loan portfolio grew by 110%, totaling ZWG2.7 billion, with 90% of the loans denominated in USD.
The group's operating income for the period stood at ZWG1.3 billion, marking a 10% increase from the previous year. The positive performance was attributed to the diversified product offering, increased transaction volumes, and a strong balance sheet, particularly supported by US dollar-denominated assets funded by offshore credit lines.
NMBZ reaffirmed its commitment to expanding its business both locally and internationally, with a continued focus on strengthening Zimbabwe's agricultural sector and other key productive sectors.
In its trading update for the 9 months ending September 30, 2024, NMBZ highlighted the importance of this collaboration, particularly after Zimbabwe faced one of its worst droughts in 40 years during the 2023/24 agricultural season.
According to NMBZ, the partnership with Rabobank will help provide comprehensive financial solutions to support both large-scale and smallholder farmers across the country. "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," the financial group said.
The update further revealed that an in-depth analysis of the horticulture sector identified significant growth opportunities, especially in export markets such as the European Union, Middle East, and the Far East. The analysis stressed the need for financing solutions that cater specifically to the horticulture industry's unique requirements, which will help farmers scale up operations.
NMBZ added that it is actively working on unlocking financing options tailored to the sector's needs, aiming to expand its footprint in this vital area of the economy.
As part of its efforts to support Zimbabwe's agriculture and other key sectors, NMBZ's subsidiary, NMB Bank Limited, has been mobilizing external lines of credit to enhance local production capacity. The bank recently secured a US$25 million facility from Proparco, a French development finance institution. This funding will be directed towards supporting SMEs, women entrepreneurs, and businesses involved in both importing and exporting.
In addition, NMBZ disclosed that three additional credit lines valued at US$75 million are currently under negotiation to further support the growth of Zimbabwe's economy.
For the period ending September 30, 2024, NMBZ reported solid financial results, with a capital adequacy ratio of 30.92%, well above the regulatory minimum of 12%, signaling a robust financial position. Total assets for the group increased by 39%, reaching ZWG5.5 billion, driven by growth in loans and advances and investment securities. The bank's loan portfolio grew by 110%, totaling ZWG2.7 billion, with 90% of the loans denominated in USD.
The group's operating income for the period stood at ZWG1.3 billion, marking a 10% increase from the previous year. The positive performance was attributed to the diversified product offering, increased transaction volumes, and a strong balance sheet, particularly supported by US dollar-denominated assets funded by offshore credit lines.
NMBZ reaffirmed its commitment to expanding its business both locally and internationally, with a continued focus on strengthening Zimbabwe's agricultural sector and other key productive sectors.
Source - newsday
