Nedbank reaffirms commitment to Zimbabwe as an investment destination

Nedbank Group has reiterated that Zimbabwe remains an attractive destination for foreign direct investment and pledged continued support for key sectors of the economy to drive growth.

Dr. Terence Sibiya, Nedbank Group Managing Executive of Nedbank Africa Regions, made the remarks during a virtual presentation of the 2024 financial results. He emphasized the group's focus on meeting funding demands in Zimbabwe to support economic development.

"We still think Zimbabwe is open for business and will continue to support those sectors that drive Zimbabwe's economic growth.

"We look at our strengths, which include infrastructure finance, project finance, energy finance, and lending into sectors that drive economic growth.

"A key focus for us going forward will also be to support small to medium enterprises (SMEs) and mid-tier corporates," said Dr. Sibiya.

He noted that Zimbabwe offers significant opportunities in critical economic sectors, and Nedbank Zimbabwe remains committed to supporting these areas with the backing of its parent company.

Dr. Sibiya highlighted that the use of the US dollar as a functional currency has enabled Nedbank Zimbabwe to sustain its support for the productive sectors of the economy.

"The demand from the productive sectors, including agriculture, mining, infrastructure, and energy, remained strong. That helped stabilize the volatility experienced earlier.

"We did not see a dip in lending from our side and continued to keep our doors open for clients throughout the tobacco season, merchants, as well as some of the farmers and other key drivers of GDP growth," he said.

Nedbank, which has operations across the region beyond South Africa, acknowledged that each market poses unique challenges. Dr. Sibiya cited Mozambique as an example, where economic growth once averaged 6.5 percent annually but has slowed due to political instability affecting imports through the ports of Maputo and Beira.

Similarly, Zimbabwe has faced currency volatility and foreign exchange shortages. In response, Nedbank has leveraged digital platforms to continue servicing clients in the market.

"Different countries present different opportunities at different times, so it is up to Nedbank in Zimbabwe, Namibia, and Lesotho to respond to market needs accordingly," he added.

Commenting on liquidity issues in Zimbabwe, Dr. Sibiya said that such challenges are a global market phenomenon, which the bank is addressing in collaboration with the Reserve Bank of Zimbabwe (RBZ).

"From a Nedbank perspective, we are doing our part in supporting clients when they need to liquidate some of their ZAR (South African Rand) or require forex support. We engage with the Reserve Bank to assist our clients and ensure continued liquidity in the market," he said.

Dr. Sibiya emphasized that a strong relationship with the RBZ has enabled Nedbank to maintain client support while playing a role in ensuring market liquidity through collaboration with the central bank.