CBZFH Secures US$50m

LIVINGSTONE MARUFU

CBZ Financial Holdings (CBZFH), a publicly traded financial service group, has secured a significant US$50m line of credit from Afreximbank, Business Times can report.

The funds are aimed at alleviating the liquidity squeeze currently affecting the market and supporting the country’s productive sector.

The move comes at a time when Zimbabwe’s financial market is experiencing substantial challenges.

The latest development was revealed by CBZFH’s CEO, Lawrence Nyazema.

“In February (last month), I attended the Mining Indaba in Cape Town, where we signed the US$50m deal with Afreximbank—our trusted partner. Given the national challenges we face, we are often excluded from accessing some Western financing. This is why Afreximbank is crucial to us—it has consistently supported Zimbabwe’s financial sector, and without its help over the years, our situation would be much different,” Nyazema remarked.

He said CBZFH aims to raise a total of US$500m in 2025, with plans to secure over US$400 million in the remaining months of the year.

He emphasised that the US$50m credit line signed in February had injected renewed energy into the market and demonstrated CBZFH’s capability as the largest financial institution in Zimbabwe. The bank hopes this will unlock additional funding for the sector.

“Raising half a billion dollars is our goal, but it must be under the right conditions. If we achieve this, it will greatly benefit the economy by stimulating trade, supporting business activities across various sectors, and ultimately enhancing overall economic growth. However, it’s important to note that not all financial institutions have the capacity to secure large credit lines,” Nyazema added.

CBZFH’s larger strategy also includes potential collaboration with smaller financial institutions by offering them lines of credit, further solidifying its position as a key player in the sector.

Since its collaboration with Afreximbank began, CBZFH has secured approximately US$200m from the bank, underscoring the importance of this partnership despite questions over the pricing of these credit lines.

“The pricing structure is tied to the secured overnight rate, typically around 4-5%. With additional margins and costs, financial institutions usually receive these lines at rates between 9% and 13%, depending on the client. While the margins are tight, we remain committed to providing capital to Zimbabwean businesses, even if it means breaking even,” Nyazema noted.

CBZFH continues to navigate the challenging financial landscape by ensuring access to capital, particularly for the productive sector. Despite rising costs, Nyazema reaffirmed the bank’s commitment to ensuring that local businesses receive the necessary financial support.

Turning to the broader economic challenges, Nyazema stressed the importance of resolving Zimbabwe’s national debt arrears. He called on the authorities to settle debts with key international lenders, such as the World Bank and the African Development Bank, as this would pave the way for the private sector to access affordable capital.

“If we clear our arrears and demonstrate our ability to repay loans, it will enhance our credibility internationally and enable the private sector to raise meaningful capital at favorable terms,” Nyazema said.

In the meantime, CBZFH is focusing on enhancing customer convenience, recently deploying 10 deposit-checking Automated Teller Machines (ATMs) in high-traffic locations.

Despite facing setbacks in acquiring local institutions, CBZFH remains focused on expanding its regional and global footprint. While mergers and acquisitions (M&A) strategies could have accelerated this process, Nyazema stated that the bank is pursuing growth independently, exploring opportunities in Botswana and South Africa.

“The opportunities ahead are boundless. We are committed to expanding across Africa, the Middle East, and South America, using various methods, including M&As when they arise. Our goal is to be present in seven African countries, one Middle Eastern country, and two South American countries,” Nyazema concluded.

With its aggressive expansion plans and determination to support the local economy, CBZFH is positioning itself as a key driver of Zimbabwe’s financial sector growth.