POSB secures US$37.5m funding

CLOUDINE MATOLA

The People’s Own Savings Bank (POSB) has secured US$37.5m in new funding to support agriculture, small and medium enterprises (SMEs) and other productive sectors, it has been established.

Speaking at the bank’s annual general meeting yesterday, POSB chief executive officer Garainashe Changunda said the funding package includes a US$22.5m facility to help farmers modernise agricultural equipment.

“We have established a US$22.5m facility to support farmers in modernising their farming equipment,” Changunda said.

“ Of particular interest to stakeholders is the US$10m line of credit that we established with the African Export-Import Bank (Afreximbank), as well as another US$5m that we raised through our shareholder to support protected sectors of the economy.”

He said the bank’s broader strategy is centred on becoming a modern, trusted and digitally driven financial institution while reducing the cost of banking for customers.

“We are transforming POSB into a modern, trusted and digital bank. Our focus is on leveraging digital technologies to reduce operating costs, enabling us to provide customers with affordable and accessible banking services,” he said.

Changunda said the bank has made significant progress in implementing its Transformation Strategic Plan (TSP), with execution now standing at 83.5%.

The strategy, launched in 2025, is designed to reposition POSB as a high-volume, low-margin bank offering simple, affordable and accessible financial products through digital channels.

“In terms of our strategy, we are pursuing a high-volume, low-margin business model that provides access to simple, affordable and accessible financial products,” he said.

“We have made significant progress on key strategic initiatives, reaching important implementation milestones. As at June 30, 2026, the overall strategy execution index stood at 83.5%, reflecting substantial progress towards the successful implementation of the TSP.”

Changunda said the full rollout of the bank’s core banking system is scheduled for completion by December 31, 2026, marking a major milestone in its digital transformation programme.

“The full deployment of the core banking system is targeted for completion by December 31, 2026, in line with our strategic objective of building a modern and digitally inclusive financial institution,” he said.