FCB to deploy a larger portion of Afreximbank funds to agriculture sector
LIVINGSTONE MARUFU
First Capital Bank (FCB), a leading financial services provider listed on the Victoria Falls Stock Exchange, says it will deploy a larger portion of the US$20m Afreximbank loan to farmers to be utilised in the 2023/2024 summer cropping season.
This was revealed by the lender’s CEO, Tapera Mushoriwa.
“We don’t have the actual figure on how much we are going to invest in the forthcoming agriculture season but we will certainly invest a huge chunk of the US$20m from Afreximbank towards agriculture. Besides that (US$20m from Afreximbank) we are going to invest into the agriculture sector from the internal funds to boost productivity,” Mushoriwa said.
According to him, the majority of households rely on agriculture, which should be supported in order to realize Vision 2030.
The development comes as the First Capital Bank (FCB) has invested close to US$15m in its new state-of-the-art headquarters in Borrowdale.
The construction of the new four-storey building will be complete within the next 12 months.
Speaking at the ground breaking ceremony last Friday, acting governor of the Reserve Bank of Zimbabwe, Jesimen Chipika, who was the guest of honour, said such a development signifies great growth that FCB has been given a nod by the regulator.
“It is a sign that they are here to stay and are confident in the economic recovery of Zimbabwe, and we are ready to partner with our banks to support development in the economy,” Chipika said, adding that in terms of modernising the economy, the banks are critical because they are the intermediaries who link the financial resources to the development path of the country.
“We have always insisted the bank is not always there just for them to make profits, but there to support development in the jurisdiction they operate,” she said.
“Zimbabwe is open for business. It is also structured to deliver an upper middle-income economy by the year 2030. Overall, our target is to attain an inclusive average annual real GDP growth of more than 5 percent. So, as the regulator, we applaud this because it speaks to the objectives and implementations under National Development Strategy 1.”
FCB has joined a host of other financial institutions that have since moved away from the city centre to the leafy suburb of Borrowdale.
Mushoriwa said the project will be financed from internal resources as the bank has a robust cash flow plan in place.
“We are firmly digging our roots in Zimbabwe and have confidence in its economic potential. We are committed to leveraging our regional capabilities to realise mutual growth prospects for all our key stakeholders,” Mushoriwa said.
He said the modern and environmentally friendly building also presents an opportunity to provide a world-class working environment for staff who are instrumental in driving the business.
In its financial results for the six months to June 30, 2023, the First Capital Bank reported a profit after tax of US$4.3m, which was a 232% increase from the 2022 comparative period.
The group recorded a rising income which was supported by a 23% growth in net fees and commissions to US$11.5m, which the group attributed to several initiatives to increase US$ transaction services for customers.
FCB net interest income increased by 35% to US$11.6m , while other income declined by 14% to US$9m.
FCB chairman Patrick Devenish said the bank will continue to offer relevant financial solutions to the local market through its digital capabilities, knowledgeable workforce, and vast branch network across the country.
FCB Zimbabwe is part of FMB Capital Holdings, whose other banking operations are in Botswana, Malawi, Mozambique and Zambia.
